It's mortifying enough to be busted carrying a faux designer handbag (um, not that we would know or anything), but imagine how much worse it must be to be caught by the designer. The other night at the RxArt Ball, Kate Spade told New York about a time she accosted a woman carrying a big ol' fake. "I knew all the bags that were on the street, and this one I didn't know had hit the street yet, but I knew it wasn't real," she said. To add insult to injury, it wasn't even high-quality! "I'm telling you, I was across the street and I could tell," she said. So, Spade said, she walked determinedly across the street to ask her about it. She wasn't going to demand it back or anything, she said, she was just curious as to where they were distributing the new stuff. "Where did you get that?" she asked the woman, who recognized her immediately. "She was like, 'Oh, my God, you're Kate Spade!'" And how did she explain herself? "She said, 'Oh I didn't buy it, my husband did,'" said Spade, who told us that she's since stopped calling out people on the street, although we're not sure we believe her. "Anytime you ask someone, they say that," she muttered. "'I don't know, it was a gift.'"You heard it here first, ladies and gentleman. If Kate Spade catches you carrying a fake handbag, she will hunt you down. —Amy Preiser