Risk & Compliance

Time Warner CFO Named by Alleged Madam

A woman alleged to have run a brothel out of her Manhattan apartment denies charges, saying CFO Wayne Pace was one of several men who supported her...
Stephen TaubJune 19, 2006

The chief financial officer of Time Warner has been identified by alleged prostitute and madam Andreia Schwartz as one of her “sugar daddies,” according to reports published over the weekend by The New York Post and The New York Daily News.

Both papers reported Schwartz’s arrest last Wednesday on charges of prostitution, money laundering, and narcotics. According to those reports, the Brazilian native allegedly ran a brothel out of her Manhattan apartment.

Schwartz, who denies being a prostitute or a madam, told the Daily News in a jailhouse interview on Friday that Time Warner CFO Wayne Pace was one of several wealthy men who supported her, saying he “showered her” with gifts ranging from cash to clothes, and helped her buy an apartment during a relationship lasting several years.

Pace’s lawyer, Mark Pomerantz of Paul, Weiss, Rifkind, Wharton & Garrison, reportedly told the Daily News that Pace, who is married, knew Schwartz, but “denies having had any inappropriate relationship” with her.

Pace has been CFO since November 2001. Last year, he earned a total of $6.8 million, including $3.7 million in salary and bonus, according to the company’s most recent proxy.