Former State Dept. Official Tobias Cancels Address After Admitting to Being 'D.C. Madam' Client

Former U.S. State Department deputy Randall Tobias won't deliver the commencement address for Indiana University School of Law-Indianapolis to avoid being a distraction following his resignation last week.

Tobias resigned as director of U.S. Foreign Assistance and US Agency for International Development Administrator on Friday, citing 'personal' reasons, following the disclosure that he had been a client of the so-called "D.C. madam" escort service. Tobias told ABC News he received massages from the company's workers at his house, but not sex.

Indiana Supreme Court Chief Justice Randall T. Shepard will replace Tobias as the commencement speaker on May 13, said Richard C. Schneider, spokesman for Indiana University-Purdue University Indianapolis.
Government prosecutors say Deborah Jeane Palfrey, known inside the Beltway as the "D.C. madam," ran what amounted to a Washington-area prostitution business from her California home. Palfrey claims her business was legitimate and that she is being unfairly targeted in the probe. She claims her workers signed contracts saying they would not participate in any illegal activity.
She handed over 46 pounds of phone records to ABC News, which will air a special on the story Friday night on "20/20." The story has sent jitters through Washington, since Palfrey has before threatened to sell the names of her clients to raise money for her defense fund.

IUPUI interim dean Susanah Mead told students in an e-mail that Tobias "called me (Wednesday) to discuss his thoughts about whether his participation could be a distraction, given current events."

Mead said Tobias "indicated that he did not want anything to detract from this very important day for you and your families and therefore he has decided that it would be best if he did not participate in the day's activities."