Before they left, one of the men Richards had been slamming fired back.

"You're not funny," the man yelled. "That's why you're a reject, never had no shows, never had no movies. 'Seinfeld,' that's it."

"Oh, I guess you got me there," Richards said before dropping his microphone and stalking off the stage.

Comedian Paul Rodriguez, who was on the bill with Richards, said he went "way over the line," reports NYDN

"The audience came here expecting to see Kramer, and they got Mark Fuhrman," Rodriguez said, referring to the racist cop in the O.J. Simpson case.

Gossips are not buying the apology.

Our pals at FadedYouth point to a 2005 Blind item, which gossips say is about Comic Michael Richards.

'This white actor appeared on a long running TV series. This sitcom is one of the most successful shows in television history. This actor was given his own show (The Michael Richards Show was a short-lived sitcom that debuted on NBC in 2000.) when the series was canceled. The show lasted a few seasons; his career took an nose-dive and never recovered. This actor has a secret; he has an intense hatred for African-Americans. So much so, he makes donations to white supremacist websites. He also has a reputation for being a lousy lover, his nickname in Hollywood is: ‘The one minute man.’'

"For me to be at a comedy club and flip out and say this crap, I'm deeply, deeply sorry," the former "Seinfeld" co-star said during a satellite appearance for David Letterman's "Late Show."

"I'm not a racist. That's what's so insane about this," Richards said, his tone becoming angry and frustrated as he defended himself in a clip from the show played on CBS before "Late Show" aired Monday night.

Richards described himself as going into "a rage."

Jerry Seinfeld, who had issued a statement saying he was "sick over this horrible, horrible mistake" and calling it offensive, was scheduled as a Letterman guest Monday. He encouraged Richards to make a satellite appearance to talk about the incident, a CBS publicist said.

"I'm sure Michael is also sick over this horrible, horrible mistake. It is so extremely offensive. I feel terrible for all the people who have been hurt," Seinfeld said in a statement.

Eventually someone says: "It's not funny. That's why you're a reject, never had no shows, never had no movies. `Seinfeld,' that's it."

On Monday, about a half-dozen community activists gathered at the club to denounce Richards' remarks and demand an apology.

"These kind of comments hurt all of us," said protester Lita Sister Herron of the Youth Advocacy Coalition. She called Richards' comments "hate speech."

The protesters also demanded an apology from the Laugh Factory. At a news conference a short time later, club owner Jamie Masada expressed remorse and said Richards will not be back at the club until he says he's sorry.

"This is one thing we don't tolerate. ... I personally apologize. I apologize from my heart," Masada said Monday.