Giampaolo Tarantini, 36, has admitted he paid for escorts to attend the famous Berlusconi bunga bunga parties.
The police say he extorted more than half a million euros in exchange for telling investigators that Berlusconi was not aware the women were prostitutes.
Mr Berlusconi admits that he paid the money to Taratini but says he was helping a family in need.
“I helped someone and a family with children who found themselves and continue to find themselves in very serious financial difficulty,” he was quoted as saying in news magazine Panorama.
“I didn’t do anything illegal, I limited myself to helping a desperate man without asking for anything in exchange. That’s how I’m made and nothing will change that.”
Newswarped would like to point out to Mr Berlusconi that I am in desperate financial nead and I have children. Yuo need to be consistent here Silvio.
Naples prosecutor Francesco Greco said Mr Tarantini had forced Mr Berlusconi to pay his family legal and housing costs in exchange for Mr Tarantini’s co-operation in a prostitution investigation in southern Italy.
Mr Tarantini, who works in medical supplies in Bari in the south of Italy, first came to prominence two years ago when he admitted paying about 30 women, including professional escorts and prostitutes, to attend lively parties (that is a modern term for orgy) given by the prime minister at his homes from 2008 onwards.
Mr Berlusconi’s house parties have been the subject of criminal investigations which culminated in the prime minister being indicted for allegedly having sex with an underage Moroccan nightclub dancer called Ruby (her parents call her Karima El Mahroug).
Mr Berlusconi is proud of his macho image and insists that he has never had to pay for sex. Which is quite correct – he has got someone else to pay for the sex for him.