David Letterman Admits Affairs, Reveals Extortion Plot VIDEO

On the "Late Show," David Letterman admitted he had affairs with show staffers while revealing an extortion plot, allegedly committed by a member of the CBS news division.

Letterman said that "this whole thing has been quite scary." But he mixed in jokes while outlining what had happened to him, seeming to confuse a laughing audience at
Thursday's taping about whether the story was true.

Robert J. "Joe" Halderman, a producer for the true-crime show "48 Hours," was arrested
Thursday and indicted on one count of attempted first-degree grand larceny, punishable
from five to 15 years upon conviction, District Attorney Robert Morgenthau said.

"Our concern here is extortion, and that's what we're focusing on," Morgenthau said.

The district attorney's office said Halderman left a letter and other material for Letterman
early Sept. 9. He wrote that he needed "to make a large chunk of money" by selling
Letterman a screenplay treatment.

The letter told Letterman that his world was "about to collapse around him" when information about his private life is disclosed. He said it would lead to "a ruined reputation" and severe damage to his professional and family life.

Letterman immediately contacted his lawyer, who arranged a meeting with Halderman. At the meeting, Halderman demanded $2 million for not releasing the material, the district attorney's office said. After the meeting, Letterman and his lawyer contacted the DA's office and the investigation began.