Sponsor Pulls Ad from Jesse James' Magazine

5/4/2010 4:20 AM PDT

Jesse James' Magazine Loses Ad Dollars Over Affair Scandal

A magazine owned by Jesse James is being punished by an advertiser who's upset at Jesse's infidelity -- and claims he doesn't want his product to be affiliated with "someone like him."

TMZ has learned a man named D.A. Sebasstian was in negotiations to run an ad for his movie, "Rat Rod Rockers!" in Jesse's Garage Magazine earlier this year -- but pulled the plug right when he first learned that Jesse had cheated on Sandra Bullock ... because D.A. didn't feel that it was in his best interest to support a person like Jesse.

Sebasstian, a married father of two, tells TMZ, "Think of all those kids who were fans of his show, 'Monster Garage.' What do you tell them now -- when they had looked up to this guy as a seriously cool role model?"

As TMZ first reported, Jesse put the building that houses Garage Magazine up for sale last week. Coincidence?

We contacted Jesse's rep for comment -- so far, no reply.