Somebody tried to shake down David Letterman for a whopping $2 million, and he Nipped. It. In. The. Bud.

On his CBS Late Show Thursday Dave admitting he was the victim of a $2 million extortion attempt and that he had had sexual relations with female members of staff.

It started three weeks ago when Dave received a package whose sender claimed to have information about alleged sexual activity between the 62-year-old star and employees of his program. The sender threatened to go public with the news if he/she did not receive $2 million.

“This morning, I did something I’ve never done in my life,” Letterman said as the cameras rolled. “I had to go downtown and testify before a grand jury.”

In his testimony, Letterman said, he admitted to engaging in sexual relationships with staff members. “My response to that is, yes I have. 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.”

Having initially contacted the Manhattan District Attorney’s special prosecution bureau, Letterman helped participate in a sting operation, eventually meeting and handing a counterfeit $2 million check to the alleged extortionist – who was arrested on Thursday.

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