Duchess sorry for 'serious lapse of judgment' after £500k sting

A News of the World video showed Sarah Ferguson promising to introduce an undercover reporter posing as a wealthy businessman to the Prince, who has been the UK's special representative for international trade and investment since 2001.

The Duke of York, who has been on official business in Asia, has "categorically" denied having any knowledge of the meeting between the Duchess and an undercover reporter from the Sunday newspaper, a Buckingham Palace spokesman said last night.

And last night he Duchess said: "I can confirm that the Duke of York was not aware or involved in any of the discussions that occurred."

Earlier, the Duchess said she was "regretful" and "devastated" by the film on the Sunday newspaper's website. The Duchess is shown telling the reporter: "500,000 when you can, to me, open doors." Asked if she was referring to the Prince, she said "Yeah", then shook hands with the reporter before apparently accepting a 40,000 US dollar (27,600) cash down-payment.

She was filmed apparently telling him how to transfer 500,000 to her bank account. The Duchess was filmed explaining how the Prince meets the "the most amazing people" in his role as special representative, but insisted he "is completely whiter than white".

In one film scene, the Duchess is shown sitting in front of a table with a large amount of cash laid out on it. The paper said despite the Prince knowing nothing about the deal, the Duchess claimed to have

discussed it with him, saying:

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