Executive Denies Rumors of Links to Alleged Madam : Studios: Statement by top Columbia official seeks to dispel gossip that film funds were used to pay call girls.

In a highly unusual step, a top executive at Columbia Pictures publicly distanced himself Tuesday from alleged madam Heidi Fleiss and denied widespread rumors that he had used film development money to procure prostitutes.

Columbia production chief Michael Nathanson--who has never been named in connection with Fleiss--said through his lawyer that he nevertheless felt the need to respond to persistent gossip linking him to the alleged madam to the stars.

Since Fleiss’ June 9 arrest, a flurry of blind items have appeared in gossip columns, alluding to a major executive who would lose his job over his relationship with Fleiss.

Nathanson, 37, president of worldwide production at Columbia, declined to comment. But his lawyer, Howard L. Weitzman, said the studio executive “has not done anything that should cause any concern on behalf of Columbia. . . . It’s time he confront the rumors, put them to bed and get on with his life.”

Fleiss said Tuesday that Nathanson had never been her client.

Meanwhile another entertainment figure, rock star Billy Idol, reiterated that he had never been a client of Fleiss, although he was introduced to her last year at the Sunset Strip club On the Roxx.

“I have never used her professional services, and God knows I don’t need to,” said Idol in a statement faxed to the press. “Fortunately, I’ve never had to pay for sex.”

His publicist, Ellen Zoe Golden, said: “There may have been sex but there wasn’t commerce” between Idol and alleged employees of Fleiss. The fax, the publicist said, was in response to a barrage of inquiries from tabloid television shows after a front-page profile of Fleiss in Sunday’s Los Angeles Times.

In that story, a number of entertainment industry figures, including Idol, producer Robert Evans, actress Victoria Sellers and rock star handler Elliot Mintz, acknowledged knowing Fleiss socially. The story also reported that a number of other Hollywood figures had expressed private concern that they might be identified as Fleiss’ clients.

Fleiss, 27, a pediatrician’s daughter who police allege operated one of the most exclusive call girl rings in Los Angeles, has been free on $100,000 bond since her arrest on felony pimping, pandering and narcotics charges. Formal charges have not been filed, although her lawyer has said he expects she will be charged. She is scheduled to appear in court Monday.

Four months ago, Nathanson hired well-known private investigator Anthony Pellicano to trace the source of rumors that the executive was using bogus development deals at Columbia to bankroll the purchase of drugs and prostitutes, Pellicano said.

Although the rumors receded for a time and were never substantiated, Pellicano said, they cropped up again after the June 9 arrest of Fleiss, who says Nathanson knows her ex-boyfriend.

“This rumor has gone to epic proportions, and it just isn’t true,” the private eye said. “He never had anything to do with this woman, and obviously never did anything improper at Columbia and has no knowledge of anyone else at Columbia who has had any dealings with this woman.”

Fleiss said Tuesday that she met Nathanson socially through her former boyfriend, Ivan Nagy, a television and film director.

Nathanson’s attorney said Nagy had known Nathanson professionally for years. He said Nagy had peripheral dealings with Columbia when he was trying to get a credit on a film that was not made.

Nagy could not be reached Tuesday. He said earlier that he knows Nathanson professionally. The studio had no comment.