Letterman: I Was Target of Extortion

David Letterman acknowledged on Thursday's show that he had sexual relationships with female employees and that someone tried to extort $2 million from him over the affairs.

During the taping of his CBS late-night show in New York, Letterman discussed receiving a threat to either pay $2 million or risk the relationships being made public.

Watch Letterman's remarks
Photos: David Letterman

In a release from the show's producer, Letterman said he referred the matter to the Manhattan district attorney's office and that an investigation ended in an arrest Thursday. Letterman did not identify the person he said was arrested.

CBS News correspondent Kelly Wallace reports that Letterman's alleged blackmailer was Joh Halderman, a 20-year-plus veteran of CBS News.

The "48 Hours" producer was taken into custody Thursday by two plain-clothes police officers outside the CBS News broadcast center in Manhattan.

Halderman is an award-winning journalist who has covered several wars for CBS, reports Wallace. He has worked as a producer for the real-life crime show "48 Hours" for more than a decade.

As part of the investigation, Letterman said he issued a "phony" $2 million check to the individual and the arrest followed - along with testimony by Letterman.

"This morning, I did something I've never done in my life," said Letterman. "I had to go downtown and testify before a grand jury."

In his testimony, he said he acknowledged sexual relationships with members of his staff.

"My response to that is, yes I have," Letterman said. "Would it be embarrassing if it were made public? Perhaps it would. I feel like I need to protect these people. I need to certainly protect my family."

CBS spokesman Chris Ender said Thursday that "Letterman's comments on the broadcast tonight speak for themselves."

Letterman and longtime girlfriend Regina Lasko married in March. The couple began dating in 1986 and have a son, Harry, born in November 2003.