San Francisco police was called to the home of Le Go-Go Group CEO Eric Schmidt yesterday afternoon to control a domestic dispute. Several neighbors dialed 911 when they heard usually loud screaming and shouting coming from the Schmidt residence around 4:30pm. When SFPD knocked down the front door, the two officers described a chaotic scene. In the official police report, Officer David Brown said, “Half the diamond chandelier was on the floor, shattered. Chairs, tables were overturned. We found Mr. Schmidt crying in the corner of his gigantic living room. An 18 to 60 year old Chinese fellow had a black eye and was walking around screaming profanities.”

Thanks to the brilliant investigative journalism of our close affiliates at Fox News and TMZ, we recently learned the Chinese man turned out to be one of Schmidt’s closest friends. Schmidt’s youngest son, 12-year old George, nicknamed Goog, was often seen by neighborhood parents playing with a Chinese boy. This Chinese boy most likely is the son of the Hu Bingtao, the Chinese man found fighting with Schmidt.

The according to SFPD, the argument started when Schmidt accused Hu of intentionally installing a key logger on Schmidt’s family computer. Being the head of Le Go-Go Group, Schmidt values his family’s privacy tremendously. He forbids his family from using web-based email or storing documents online. Every file is kept locally, encrypted on the hard drive.

Hu denies these accusations, calling Schmidt “a paranoid crazy man who has anger issues.” In Hu’s account of the incident, “Schmidt flipped out when he found BonziBuddy installed on his computer and immediately called in two teenagers from Geek Squad. After wasting three hours trying to figure out how to turn the damn thing on, the incompetent duo told Schmidt it was a key logger. The next thing I knew, I was on the ground with a black eye.”

As of this hour, Hu is not pressing charges. Unless Schmidt formally apologizes, Hu is planning on permanently breaking off all personal and business ties with Schmidt. More to come as this story develops.