Designer Marc Jacobs has to pay $1m in fashion bribe case

Marc Jacobs, the US designer, has been forced to pay $1m to extract himself from a case in which his company is said to have used bribes to secure exclusive use of a desirable venue for his fashion shows.

Marc Jacobs International allegedly paid $35,000 in cash and goods to the manager of the 26th Street Armory, an historic landmark that is used by New York's 69th infantry regiment as its headquarters. The payments were used to secure the designer the building's $6,000-a-day drill hall - one of Manhattan's most desirable venues - during New York Fashion Week in 2007 and 2008.

To avoid the bribery charge being taken further, and in addition to the £1m fine, Jacobs (pictured with Naomi Campbell and Victoria Beckham)agreed to retain a private monitoring agency for two years to oversee his company's operations.James Jackson, the manager of the building, did not get off so lightly. He pleaded guilty to grand larceny for taking the payments and now faces up to 15 years in prison. ·