Music manager Chris Herbert insisted that he continually told his client Justin Edwards, 28, not to try to make money from the mobile phone clip of the former N-Dubz singer performing a sex act on him.
He said: "My reputation and business has been ruined by these unsavoury people. I never tried to make a penny.
"I even got a lawyer to tell him he would be sued. I tried to protect him because he was my client but I never made or asked for a penny. To be honest, I wish I'd never set eyes on the idiot."
Herbert was sacked as a consultant on The X Factor when it was revealed that Tulisa would begin proceedings to sue over the sex tape leak.
Herbert, who helped create the Spice Girls, said that he was disgusted when he learnt that Edwards wanted to leak the tape online and is sorry for any part he may have played in the saga.
He said he hopes that he will be allowed back to The X Factor so "I can explain everything to Tulisa in person".