Tom Schwartz Fence Sits in 1st Remarks on 'Vanderpump' Cheating Scandal

Tom Sandoval's business partner, Tom Schwartz, has been mum on the cheating scandal thus far -- but now, he's breaking his silence ... and, boy, is he trying to walk a fine line.

A pap ran into Schwartz at LAX Saturday, where the dude seemed open and willing to talk about everything ... the first time he's spoken publicly on the issue, which has been dragging on for almost 2 weeks now. Interestingly enough, he seems pretty chipper here.

Check it out ... TS says Sandoval is holding up OK all things considered -- but does note his right hand man -- with whom he's invested in both TomTom's and Schwartz & Sandy's Lounge --  is filled with profound sadness and feels like a POS ... rightly so, he adds.

Schwartz says Sandoval knows he screwed up ... and he (Schwartz) feels for everyone involved, saying it's just a bummer of a situation all the way around. That's putting it mildly!

While Schwartz refrains from throwing Sandoval or Raquel Leviss under the bus ... he does seem to show some outward support for Ariana Madix, the one who was cheated on. He says she has a good support system around her, and hopes she goes on a "living spree."

As for whether Schwartz was aware of any of this stuff going on before it became public ... he plays his cards close to the vest -- and, of course, teases the show too, telling people to tune in. One thing he does make clear ... the whole saga has, indeed, hurt business.

There are reports that TomTom's liquor license was yanked this week amid all the drama -- but it's unclear if that has anything to do with what's going on with TomAriana/Raquel. In any case, all of Tom and Tom's businesses have come under major scrutiny in recent days.

Back to Schwartz though. He says he thinks everything's gonna be alright in the long run, and is taking things day by day. Good attitude ... considering he's getting dragged himself.