The alleged extortionist will get his day in court. However it would appear that Dave was in violation of CBS Corps ethics policy regarding
Supervisor/Subordinate Relationships [page 11]
CBS recognizes that consenting romantic or sexual
relationships may develop between a supervisor and a
subordinate (whether such supervision is direct or indirect).
These relationships frequently lead to complications and
significant difficulties for the supervisor, the subordinate,
others in the workplace, and CBS.
If a consenting romanticor sexual relationship between a supervisor and a direct or indirect subordinate should develop, CBS requires
the supervisor to disclose this information to his or her
Company’s Human Resources Department to ensure
that there are no issues of actual or apparent favoritism,
conflict of interest, sexual harassment, or any other
negative impact on others in the work environment.
Upon being informed or learning of the existence of
such a relationship, CBS will take steps that it deems
appropriate to protect the workplace environment.
http://www.cbscorporation.com/assets/documents/BCS8-08[1].pdf
If Dave had actually followed the policy he wouldn't be in this situation. Now, perhaps he did report the relationship(s) to CBS, I don't know b/c CBS is characteristically quiet about such issues involving one of their own.