VIDEO: David Letterman Admits Having Sex With Staffers; Reveals Blackmail Plot

Oct. 2 2009, Updated 12:53 p.m. ET

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In a bombshell revelation during Thursday's taping of The Late Show David Letterman said that there's been a recent attempt to extort money from him.

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Letterman said that he received a package from someone three weeks ago claiming to have evidence of improper relations between Letterman and Late Show employees and threatened to reveal them to the public unless Letterman paid $2million.

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Letterman consulted with the Special Prosecution Bureau of the Manhattan District Attorney's office who advised Letterman to issue a phony $2million check to the alleged extortionist, which he did, and which resulted in an arrest.

Letterman said he had to testify in front of a grand jury and that in his testimony he acknowledged sexual relations with members of his staff.

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

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