It’s not good when the top story on your company on MarketWatch is this:

SAN FRANCISCO (MarketWatch)– A woman accused of operating a high-priced prostitution ring in New York reportedly said a top executive at Time Warner showered her with gifts, and described him as her “sugar daddy,” according to two tabloid newspapers.

Andreia Schwartz, 31, now in jail on prostitution charges, said she had a three-year relationship with Wayne Pace, a chief financial officer at Time Warner Inc., according to a New York Daily News report yesterday that cited a jailhouse interview.

Pace was unavailable for comment, but his lawyer, Mark Pomerantz, said Pace “had no inappropriate relationship” with Schwartz, and knows her as a real estate agent, the New York Daily News reported.

Representatives from Time Warner could not be reached for comment on the reports. Schwartz denies the accusation that she operated a sex-for-hire business out of her million dollar New York apartment, charging clients up to $1,500 per session, according to the media reports.

Poor Wayne — the story even made his hometown paper. More details on the scandal here.

Here’s our analysis:

1. If the alleged sugar daddy spent any company dollars on Schwartz, he’s gone. Does this ring a bell at all?

2. If authoritities determine that Schwartz and Pace had a prostitute/customer relationship and attempt to pursue that, Pace is also gone.

3. No matter what, if Pace or his lawyer say anything publicly that proves to be a lie, he’s gone as well.

The best line of the day on the scandal came from a wag on Fark, who wondered if the gifts Pace allegedly showered on Schwartz included “30 days of free AOL.”

Brilliant.