The document then related that Letterman's "world is about to collapse around him" as information about his private life is disclosed, leading to a "ruined reputation" and severe damage to his professional and family lives. The package contained other materials supporting the "screenplay treatment" and directed Letterman to call him by 8 a.m. to make a deal.
Letterman immediately called his attorney, who arranged a meeting with Halderman and contacted the district attorney's office.
In subsequent meetings, the district attorney's office said in a press release: "Halderman repeated his demand for $2 million to prevent him from going forward with his threat to publicly disclose the personal and private information described in his initial delivery to Mr. Letterman."
Letterman's attorney recorded his meetings with Halderman, and Judge Michael Melkonian said Friday the tapes showed "clear, actual and explicit" threats against the TV personality.
Halderman was given a phony $2 million check that was "designed to bounce" and the producer was arrested Friday after depositing the check in Connecticut Oct. 1.
On Friday, the Emmy Award-winning producer posted bail, but Judge Melkonian also issued a temporary order of protection to keep him away from Letterman. Halderman also has to check in with his bail bondsman once a week in person, but is allowed to travel to his Connecticut home.
CBS News released a statement saying Halderman has been suspended from his job as the investigation continues.
Halderman's lawyer, defense attorney Gerald Shargel, said that he plans on going to trial with his client.
"There is another side to this story," Shargel told reporters Friday. "If I listened to what prosecutors said, I would be out of business a long time ago."
Shargel defended Halderman saying, "He has an impeccable reputation [...] He's never been in trouble with the law."
Assistant District Attorney Judy Salwen, deputy chief of the Special Prosecutions Bureau, had originally requested that bail be set at $500,000, saying, "There is a serious question as to whether [Halderman] will return to court if lower bail is set."
Salwen said that tape recordings of two meetings between Halderman and Letterman's attorney showed "clear, actual and explicit" threats against the comedian.
It remains unclear how Halderman obtained the information he used to blackmail Letterman, but public documents show he lived with one of the late night talk show's longtime assistants, Stephanie Birkit, until last August.
The 34-year-old, who could not be reached for comment, made frequent appearances on Letterman's show over the years.
Halderman himself is twice divorced; he has two children with his second wife and three stepchildren.
According to divorce papers, as of May 2004, Halderman was required to pay $6,800 a month in child support and alimony. He tried to decrease his child support payments to $2,039 in 2007, despite the fact that his yearly earnings had increased from $189,000 to $214,000. He was also receiving $1,500 a month in rent from Birkitt, with whom he shared his house.
When Halderman's ex-wife won custody of the children, she took them to Colorado.
In an interview with CNN, Halderman's his uncle said his nephew was very upset by the move.
"But I never heard any hostility from him other than it hurt. We had no reason to believe he would be depressed enough to get in this kind of a situation," Richard Smith said.