NEW YORK,- Media conglomerate Time Warner Inc. on Tuesday said it was looking into whether company funds were used by its chief financial officer for gifts he allegedly gave an accused prostitution ringleader.

Andrea Schwartz, accused of operating a high-priced sex for hire business out of a million-dollar New York apartment, told two New York tabloid newspapers last week that Time Warner CFO Wayne Pace was her “sugar daddy” and had showered her with gifts and clothes for about three years.

“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,” a company spokesman said.

“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,” the spokesman added.

Pace’s 2005 annual compensation reaches nearly $7 million, according to the company’s latest regulatory filing.

Pace’s lawyer Mark Pomerantz told the New York Daily News in its Saturday edition that his client “had no inappropriate relationship with her.” Pomerantz could not immediately be reached for comment.

Time Warner is the world’s largest media conglomerate, home to People magazine, the HBO pay cable network and the Warner Bros. film studio.