Carmen Electra allegedly walked in on Simon Cowell in bed with Lauren Silverman.

'Scary Movie' actress Carmen enjoyed a brief fling with the 'X Factor' boss late last year, and it has now emerged things cooled off between them this February when Carmen caught Simon in the act with his married lover, who is now pregnant with his first child.

A source told E! News: ''Carmen was at Simon's house in Los Angeles when she literally busted him with Lauren. Simon called her a friend ... there was nothing platonic about what was going on, if you know what I mean.''

This could explain why the 53-year-old music manager put a stop to his romance with Carmen so quickly, as he is rumoured to have been having an affair with Lauren for up to four years, unbeknownst to her husband and Simon's close friend, property developer Andrew Silverman.

The insider added: ''There was no way [Carmen] was going to stick around and be a third wheel.''

Carmen appeared unfazed by the news of Simon's love child and insisted he would make a great dad when quizzed about the scandal after the news first broke.

She explained: ''What I witnessed working with him on 'Britain's Got Talent' and coming to see him during 'X Factor' is that the people he truly believes in, he stands up for them and supports them.

''So I obviously think that his child will be very well taken care [of] and very, very loved.''

While Lauren and Andrew are expected to reach an ''amicable'' divorce settlement soon, Simon has been partying aboard his £30 million yacht in the South of France with a bevvy of glamorous women.

He met property developer Andrew - who has a seven-year-old son, Adam, with Lauren - at New York's Francis S. Gabreski Airport before he headed off to France in a bid to help settle the dispute.