>> In 1997, Gianni Versace was shot and killed on the steps of his Miami home by serial killer Andrew Cunana. Now, reports have surfaced alleging that Versace's death was the result of Mafia debts.

According to an interview with Giuseppe Di Bella, a former member of the Calabrian Mafia group ’Ndrangheta, Versace was involved in money laundering for the organization: "There were rivers of money from drugs, extortion, protection rackets, loan sharking, mountains of money and it had to be made clean. Bars, restaurants, property and luxury goods were used but also clean businesses like that of Versace."

Versace sent out a statement denying the reports: “We categorically state that it is based on the false and shameful allegations and ‘confessions’ of a former member of the ’Ndrangheta. The Versace family, together with Gianni Versace SpA, utterly refute these baseless allegations and reserve the right to take every possible civil and criminal action against anybody who repeats or propagates these allegations, and to protect the reputation of the company and the memory of Gianni Versace.”

But Rome-based anti-Mafia investigator Giancarlo Capaldo noted: "We have opened a file into what Di Bella says — he is an informer and his information in the past has always proved correct."

>> Linda Evangelista and billionaire Hard Rock founder Peter Morton, who began dating in late 2006, split at the end of this past Summer after a series of disagreements. It appears they've reconciled since; however, word is Morton flew to New York to patch things up in late October, and the two were spotted together at Art Basel last week, where they attended a private dinner hosted by Dasha Zhukova at Mr. Chow at the W South Beach hotel. [NY Post]

• Vogue's Virginia Smith turned down the Barneys fashion director position last week, and now the other front-runner, Lane Crawford fashion director Sarah Rutson, has too. “I have no intention or plans to leave Lane Crawford,” Rutson said over the weekend [WWD]
• Tomorrow's British Fashion Awards will honor Alexander McQueen posthumously for Outstanding Achievement; McQueen's frequent collaborator Nick Knight made a short film of the designer's archives for the occasion, scored by Bjork: “It is being styled by Edward Enninful and will feature black models only” [Style File]
• The first image of Dolce & Gabbana's Spring 2011 campaign, which features Izabel Goulart, Alessandra Ambrosio, Maryna Linchuk, and Isabeli Fontana captured by Steven Klein, has leaked (pictured) [TFS]

• Giorgio Armani and Lady Gaga, who have a multimillion dollar partnership, finally met for the first time last night; Anna Dello Russo also met Gaga and brought her a doll [Styleite]
• See the Ann Taylor-inspired looks the 2010 CFDA/Vogue Fashion Fund finalists created as part of this year's competition [Fashionista]
• Hairstylist Didier Malige on Terry Richardson's childhood: "Now I see Terry as an adult, and at the time I knew him as three or four years old. His upbringing was totally liberal compared to a French kid of his age. They had a Fiat 500, which is a tiny little car, and he always had to share it with a huge poodle, like a royal poodle. And he always had to sit in the back with the poodle." [Into The Gloss]
• Juicy Couture co-founders Pamela Skaist-Levy and Gela Nash-Taylor, who favor vintage pieces, furry vests, black leather pants, and vertiginous heels, plan to launch a new label next year, and they're dropping hints: “It will reflect the way we dress now. We have outgrown our track suits and grown up” [WWD]
• Sasha Pivovarova, who likes to make dolls, opens up her Brooklyn loft for T's cameras [T]
• Watch the music video for a young Jean Paul Gaultier's 1988 single, "How To Do That," featuring Naomi Campbell [Jezebel]
• 23-year-old Central St Martins graduate Thomas Tait only does private orders so far, but he's already got fans in Giles Deacon, Daphne Guinness, Stephen Jones, and Manolo Blahnik [T]
• Intermission Magazine's website just launched, featuring interviews with the likes of Gaia Repossi and Hanne-Gaby Odiele [Intermission]

>> Heidi Mount's hairstylist husband of three years Shawn Mount was arrested and questioned on suspicion of rape during the most recent London Fashion Week, but according to a Scotland Yard spokesman, no charges have been filed and "no further action will be taken" on the case. In a statement, Heidi responded: "We are still together. Nothing about these false accusations has changed our relationship." And Shawn said, "I am so relieved that this is over. I have always maintained my innocence." The couple has a 3-year-old son together. [NY Post]

>> Mario Testino photographed 10 out of Vogue's 12 2010 covers, but he also has loyal customers in the British royal family. The photographer, who captured candids of Princess Diana for Vanity Fair in 1997, Prince William on his 21st birthday in June 2003, and Prince Charles for his official Christmas card this year, took the first official photos of William and Kate Middleton last month after their engagement was announced.

A spokeswoman at William's office confirmed that Testino had taken "some engagement photographs." It is believed they are set to be released before Dec. 25.