Last night on his evening show, David Letterman admitted to millions of viewers that he had been the target of a $2million extortion bid over a string of affairs with staff workers after an extraordinary blackmail plot by a television producer. Shortly after his candid confession, it emerged that one of CBS’s own  producers Robert Halderman, 51, had been arrested on suspicion of masterminding the scam.

Emmy-award nominated Halderman, who worked for real-life crime documentary series 48 Hours, is also believed to have had a live-in relationship with one of Letterman’s lovers. She was today named as Stephanie Birkitt, 34, who worked alongside him on “The Late Show.”

Robert Halderman

It is claimed that Birkitt had an affair with Letterman shortly before his son Harry, now five, was born, and prior to his marriage to Regina Lasko, whom he was living with at the time. Birkitt started as an intern on The Late Show in 1996 and also interned on 48 Hours with Halderman.

Letterman explained how he had found a package in his car three weeks ago from a person claiming to have information about his sexual affairs. He started out the public confession saying he said he was glad the audience was in a pleasant mood ‘because I have a little story that I’d like to tell you and the home viewers as well. This morning, I did something I’ve never done in my life,’ Letterman told viewers. ‘I had to go downtown and testify before a grand jury. This whole thing has been quite scary,” he said. ‘I had to tell them how I was disturbed by this. I was scared for my family. I felt menaced by this man.’ Then, Letterman added, ‘I had to tell them all the creepy things I had done.’

Stephanie Birkitt

Three weeks ago, Letterman said he got in his car early in the morning and found a package with a letter saying ‘I know that you do some terrible, terrible things and that I can prove you do some terrible things.’ Letterman added: “Sure enough, contained in the package was stuff to prove that I do terrible things.” He continued: ‘The creepy stuff was that I have had sex with women who work for me on this show. My response to that is, yes I have,’ Letterman said.

Unable to resist a joke, he said: ‘I know what you’re saying… I’ll be darned, Dave had sex! Would it be embarrassing if it were made public? Perhaps it would, perhaps it would, and especially for the women. I was worried for myself, I was worried for my family, ‘ he said. ‘I felt menaced by this, and I had to tell them all of the creepy things that I had done. What you don’t want is a guy saying “I know you had sex with women I would like two million dollars or I’m going to make trouble for you,’” so that is where we stand right now.’

Robert Halderman is said to be in need of money and decided to target Letterman. He was nabbed yesterday in Manhattan at 1:30 p.m. at the CBS studios on the West Side. He was charged with attempted grand larceny; CBS said it had suspended him. He faces up to 15 years in prison.

Letterman and Birkett

Halderman, of Norwalk, Conn., may have gotten his ammunition for the scheme when a woman Halderman once dated told the TV producer that she once had had a fling with Letterman, law-enforcement sources said. Stephanie Birkett, a “Late Show” staffer, recently broke up with Halderman, sources said.

CBS made a statement today regarding the extortion plot saying: “CBS was made aware of an ongoing police investigation involving David Letterman and an employee at ‘48 Hours’ who was subsequently arrested yesterday on charges of attempted grand larceny in the first degree,” a rep for the network said in a statement early Friday. “CBS is cooperating fully with the authorities and the employee has been suspended pending the results of the investigation. Mr. Letterman addressed the issue during the show’s broadcast last night, and we believe his comments speak for themselves.”

In a press conference held by Manhattan District Attorney Robert Morgenthau Friday morning, prosecutors outlined the case against him but declined to comment on his possible motives. Morgenthau said that Halderman waited outside Letterman’s Manhattan apartment on Sept. 9 at 6 a.m. to give him a package and say that he needed a “large chunk of money.” He was hoping to sell a “screenplay treatment” and told Letterman that his life was about to collapse around him. The one-page treatment mentioned “your beautiful loving son” and said Letterman’s “world was about to collapse around him.” He also referred to “ruined reputation and severe damage to his professional and family lives.”

Halderman allegedly said he should contact Letterman by 8 a.m. to further discuss the matter. Letterman immediately called his lawyer. Halderman and the lawyer met at the Essex House hotel on Sept. 15, at which point Halderman allegedly attempted to extort $2 million from Letterman, 62, in exchange for keeping quiet about sexual activity between the Late Show host and female employees of his program. In all, the suspect and Letterman’s lawyer (but never Letterman himself) met three times. The suspect was arrested after he tried to cash a $2 million check the lawyer provided in Connecticut on Sept. 30.

On Friday afternoon, Halderman was arraigned in a Manhattan courthouse. Prosecutors recommended bail of $500,000, but a judge set the amount at $200,000. It is said that the TV executive needed money and was required to pat $6,800 a month in child and spousal support after his ex-wife, Patty Montet, took him to the cleaners.