Jacko to Schaffel -- You're A Gay Porn WHAT?!?

Michael Jackson claims he was blindsided by a business partner who had worked in the world of gay porn.

Jackson is being sued by former gay porn producer Mark Schaffel, who claims the singer owes him nearly $4 million in loans and salary. Schaffel began working with Jackson in 2000 on a charity musical project, even though he had no experience in the world of music.

In a videotaped deposition, Jackson says he became aware of Schaffel's background when a lawyer showed him a videotape of a gay porn flick. "I was shocked by what I saw...(Schaffel) was directing two guys. They were naked from head to toe and he was telling one what to do with the other and he grabbed their penis or something."

Jackson claimed he had no idea of Schaffel's background and felt betrayed.