Time Warner to Investigate CFO in Sex Scandal

NEW YORK, June 21: Time Warner is looking into whether
company funds were used by its CFO, Wayne Pace, to buy gifts for a woman
accused of operating a high-priced prostitution ring.

The alleged madam, Andrea Schwartz, told two New York
tabloid newspapers that Wayne Pace was her "sugar daddy," giving her
gifts and clothes for about three years.

A Time Warner spokesman told Reuters, "While there have
been no allegations of illegal matters regarding Mr. Pace, and this appears to
be a personal matter, we are taking appropriate steps to confirm. Mr. Pace has
assured us that there was no misuse of corporate assets or other improprieties
with respect to this matter that would affect Time Warner and its
shareholders.”

Pace makes about $7 million per year, according to published
reports. He has denied Schwartz’s claims, with his lawyer, Mark Pomerantz
telling the New York Daily News that his
client "had no inappropriate relationship with her."