- Former Abercrombie & Fitch CEO Mike Jeffries has been arrested, a spokesman for federal prosecutors confirmed.
- Jeffries, his partner, and a third man were arrested on charges of sex trafficking.
- A lawyer for Jeffries told BI that the ex-CEO would respond to the allegations in court.
Former Abercrombie & Fitch CEO Mike Jeffries, his partner, and a third man have been arrested on federal sex-trafficking charges, according to a spokesman for the US Attorney’s Office for the Eastern District of New York.
Jeffries and his partner, Matthew Smith, were arrested in Florida as part of an investigation led by the Brooklyn US attorney’s office. Both are expected to appear in federal court in West Palm Beach on Tuesday.
The third man, identified as James Jacobson, who prosecutors say was personally employed by Jeffries and Smith, was arrested in Wisconsin and is slated to make his initial appearance in federal court in St. Paul, Minnesota.
Federal prosecutors allege in a newly-unsealed indictment that Jeffries, Smith, and Jacobson operated an international sex trafficking and prostitution business. Jeffries stepped down as Abercrombie & Fitch CEO in 2014 after more than two decades at the helm of the fashion giant. Prosecutors say the alleged sex trafficking operation spanned from about 2008 to 2015.
The 12-page indictment charges the men with sex trafficking and 15 counts of interstate prostitution.
Brian Bieber, Jeffries’ attorney, and an attorney representing Smith, told Business Insider in two statements: “We will respond in detail to the allegations after the indictment is unsealed, and when appropriate, but plan to do so in the courthouse.”
Attorneys for Jacobson did not immediately respond to requests for comment. Abercrombie & Fitch declined to comment to BI.
Jeffries and Smith “relied on their vast financial resources,” Jeffries’ power as Abercrombie & Fitch CEO, and a network of people including Jacobson “to run a business that was dedicated to fulfilling their sexual desires and ensuring that their international sex trafficking and prostitution business was kept secret, thereby maintaining Jeffries’ powerful reputation,” the indictment alleges.
As part of the operation, prosecutors allege that Jeffries and Smith paid for dozens of men to travel to meet the two at their New York homes and at international hotels in places like England, France and Italy for the purpose of engaging in commercial sex acts with the men.
Prosecutors allege that Jacobson traveled throughout the US and across the globe to recruit and interview men for so-called “sex events.”
“During ‘tryouts’ of potential candidates, Jacobson typically required that the candidates first engage in commercial sex acts with him,” the indictment says.
Prosecutors said in the indictment that Jeffries, Smith, and Jacobson caused men to believe that attending the sex events “could yield modeling opportunities with Abercrombie or otherwise benefit their careers, or, in the alternative, that not complying with requests for certain acts during the Sex Events could harm their careers.”
Breon Peace, the US Attorney in Brooklyn, said the three exploited their victims “by using the so-called casting couch system.”
“This case should serve as a warning: prepare to trade that couch for a bed in federal prison,” Peace said at a press conference on Tuesday.
Peace also said his office believes “dozens and dozen of men” were victimized between 1992 and 2015 beyond the 15 John Does in the indictment. “I encourage anyone with information about this case, including anyone who was a victim of the defendant’s alleged crimes, to contact the FBI at 1-800-CALLFBI.”
A BBC investigation published last year first reported that Jeffries and Smith were involved in a network that found young men and recruited them for sex.
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