DC Madam Sex Scandal Randall Tobias

Deborah Jeane Palfrey
Randall Tobias

Washington, DC - A scandal in Washington, DC forces Indiana's Randall Tobias out of the state department. Now the woman accused of being the "DC Madam" apologizes to Tobias for the incident. She faces charges of running a high-class call girl ring.

Referred to as the "DC Madam," Deborah Jeane Palfrey is now taking legal steps to compel former Bush appointee and Lilly CEO Randall Tobias to testify in her defense.

"Friday's admission by Mr. Tobias that he engaged in legal activity while a customer of my firm supports my position all along that I operated a sexual, albeit legal business," she said.

Palfrey apologized for outing Tobias, but not for what she terms her "high-end erotic fantasy service." In March she was indicted for running a prostitution ring.

Outside of a Washington courthouse Monday she told reporters, "Allow me to say how genuinely sorry I am for Mr. Tobias, his family and his friends. I unfortunately know firsthand the impact such a revelation can have upon one's life."

Tobias resigned his Deputy Secretary of State position a day after he reportedly told ABC News that he used Palfrey's escort service - Pamela Martin and Associates - for massages but not sex.

In his State Department position as the first director over U.S. Foreign Assistance, Tobias was an outspoken proponent of abstinence-based AIDS prevention.