June 17, 2006

Accused sex ringleader linked to media CFO: reports

NEW YORK (Reuters) - An accused prostitution ringleader
said a Time Warner Inc. Chief Financial Officer was her "sugar
daddy" in a relationship where he had showered her with gifts,
two New York tabloid newspapers reported on Saturday.

A Time Warner spokesman declined to comment on the
allegations against CFO Wayne Pace.

Andrea Schwartz was accused of operating a high-priced sex
for hire business out of a million dollar New York apartment,
charging clients up to $1,500 per session, according to reports
in the New York Daily News and the New York Post.

Pace's lawyer, Mark Pomerantz, was not immediately
reachable for comment but the Daily News quoted him as saying
Pace "had no inappropriate relationship with her." Pomerantz
said Pace identified Schwartz as a real-estate agent.

According to the Daily News report, Schwartz confirmed
Pomerantz's account and said "I never did prostitution."

In an interview from her prison cell, Schwartz said she had
met the Pace at the bar of the Four Seasons hotel a few years
ago, according to the reports.

Time Warner publishes People magazine and owns the Warner
Bros. film studio.