Letterman admits affairs with staffers

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David Letterman has admitted on his show that he had sexual relationships with female employees and that someone tried to extort him over the affairs.

US talkshow host David Letterman has revealed he was the target of a $US2 million extortion attempt by someone threatening to expose his sexual relationships with female employees.

During the taping of his late-night show in New York on Thursday, Letterman acknowledged the relationships and discussed receiving a threat to either pay the money or risk the affairs being made public.

In a statement from the show's production company, Letterman said he referred the matter to the Manhattan district attorney's office and that an investigation ended in an arrest on Thursday.

Letterman did not identify the person he said was arrested.

The CBS network says an employee who worked on 48 Hours has been charged with attempted grand larceny in the Letterman case. The employee has been suspended pending the results of the investigation.

The network says the employee was arrested on Thursday, hours before Letterman went public with his account during a taping of his show in New York.

The network says it's co-operating with authorities.

As part of the investigation, Letterman said he issued a "phoney" $US2 million cheque to the individual and the arrest followed - along with testimony by Letterman.

"This morning, I did something I've never done in my life," Letterman said on his program.

"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. It was not immediately clear when the relationships took place.

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

"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 on Thursday that "Letterman's comments on the broadcast tonight speak for themselves."

Letterman's Late Show has been on the air since 1993 and screens on Network Ten in Australia.

Alicia Maxey Greene, a spokeswoman for the Manhattan District Attorney's office, declined to comment.