A CBS News employee pleaded not guilty Friday to trying to blackmail David Letterman for $2 million in a plot that spurred the TV host to acknowledge sexual relationships with women who worked on his show.

Robert J. "Joe" Halderman, a producer for the true-crime show "48 Hours," entered the plea in a Manhattan court as he was arraigned on one count of attempted first-degree grand larceny, punishable by five to 15 years upon conviction. Bail was set at $200,000.

Assistant District Attorney Judy Salwen told the judge Halderman was in debt, but did not elaborate. "The evidence is compelling," she said. "It shows the defendant is desperate, and he is capable of doing anything."

The prosecutor said Halderman gave the talk show host a package of materials that "contained clear, explicit and actual threats that indicate this defendant (wanted to) destroy the reputation of Mr. Letterman and to submit him and his family to humiliation and ridicule."

Halderman, hands cuffed behind his back, stared at the floor during most of the hearing and said only, "not guilty."

His lawyer, Gerald Shargel, said Halderman worked at CBS for 27 years and had no prior criminal record. He described him as an involved father, who coached soccer, baseball and football for his two children, ages 11 and 18.

"This story is far more complicated than what you heard this afternoon," Shargel said outside of court, but he would not elaborate.

Halderman was ordered in 2007 to pay his ex-wife $6,800 per month in child and spousal support until May 2011, when the payments will be reduced to $5,966 until May 2014, according to papers filed in Stamford Superior Court.

He had asked for a reduction to $2,039 per month because his ex-wife ex-wife, Patty Montet, was sharing a house in New Canaan with a man. But Montet argued - and the judge agreed - that her living arrangement was for convenience and not romantic.

Montet also claimed Halderman was getting $1,500 a month from his live-in girlfriend, Stephanie Birkitt, who was an assistant to Letterman on the "Late Show" and frequently appeared on camera with the host in comedy bits. Halderman earned about $214,000 in 2007.

"Mr. Halderman claims he is struggling financially, but it is difficult to see what, other than mismanagement and extravagant spending, is the reason for this," Montet's attorneys said in the court file. "His is a world of golf trips, vacations, increasing 401k assets, comprehensive benefits, security in employment, earnings as an award-winning producer for CBS, and home ownership."

Prosecutors say Halderman demanded $2 million last month in exchange for not releasing information that would ruin Letterman's reputation. Letterman told his viewers Thursday that the threat concerned sexual liaisons with female staffers.

The district attorney's office said Halderman left a letter and other material for Letterman early Sept. 9. He wrote that he needed "to make a large chunk of money" by selling Letterman a screenplay treatment - an entertainment-business term for a synopsis used to pitch a screenplay.

The supposed treatment said Letterman's world would "collapse around him" when information about his private life was disclosed, leading to "a ruined reputation" and damaging his professional and family life, prosecutors said.

The note also mentioned Letterman's "beautiful and loving son," prosecutors said.

It was not clear whether the reference was meant as a threat to harm the boy. Letterman was the victim of a 2005 plot by a former painter at his Montana ranch to kidnap his nanny and son for a ransom.

After receiving the materials, Letterman immediately contacted his lawyer, who arranged a meeting with Halderman. At the meeting, Halderman demanded $2 million to keep the material secret, the district attorney's office said.

After the meeting, Letterman and his lawyer contacted the DA's office, and the investigation began.

In an extraordinary monologue before millions of viewers, the late-night host admitted that he had sexual relationships with female employees. Letterman said that "this whole thing has been quite scary," but he mixed in jokes while outlining what had happened to him.