Ex-Abercrombie & Fitch CEO ran sex trafficking operation while at the company’s helm, prosecutors say

Former Abercrombie & Fitch CEO Mike Jeffries.

Mike Jeffries, the former CEO of Abercrombie & Fitch, his partner, and a third man have been arrested on federal sex-trafficking charges that allege they used the power of the brand to coerce dozens of men to participate in “sex events” across the US and abroad.

Jeffries and his partner, Matthew Smith, were arrested in Florida on Tuesday as part of an investigation led by the US attorney’s office of the Eastern District of New York. Jeffries and Smith appeared in federal court in West Palm Beach, and Jeffries was released on a bond of $10 million, while Smith was ordered detained.

James Jacobson, who prosecutors say was personally employed by Jeffries and Smith, was arrested in Wisconsin on Tuesday and made his initial appearance in federal court in St. Paul, Minnesota. He was released on a $500,000 bond.

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 the CEO of Abercrombie & Fitch 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 three exploited their victims, many of whom hoped to become Abercrombie & Fitch models, “by using the so-called casting couch system,” Breon Peace, the US attorney for the Eastern District of New York, said in a news conference.

“This case should serve as a warning: Prepare to trade that couch for a bed in federal prison,” Peace said.

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 B-17 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. In a statement one day after the indictment was unsealed, Abercrombie & Fitch said it was “appalled and disgusted” by the allegations against its former CEO.

“As we shared when the accusations were first made public in October 2023, we are appalled and disgusted by the alleged behavior of Mr. Jeffries, whose employment with Abercrombie & Fitch Co. ended nearly ten years ago,” the retailer said. “Speaking up and coming forward is not easy, and our thoughts remain with those who have bravely raised their voices as part of the federal investigation. ”

The fashion giant said it is committed to fully cooperating with law enforcement throughout the legal process.

The indictment alleges 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.”

As part of the operation, prosecutors say 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 to engage in commercial sex acts.

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 led the 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.”

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.

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.

Peace credited “the bravery of the victims” for finally coming forward a decade or more after the acts in the indictment.

“Once that happened, our team and our law enforcement partners investigated this case thoroughly and quickly,” he said.

Peace was also asked about the close timing of the Jeffries and Sean “Diddy” Combs sex-trafficking cases. Combs was indicted last month on allegations that he used his wealth and power for more than a decade to sexually exploit multiple victims.

“I don’t know if I could say it’s a trend, one way or another,” Peace said. “I’m hopeful that to the extent there are victims out there who have been subjected to trafficking activity, abuse, exploitation, that they would be confident enough in their federal and state law enforcement partners to come forward.”

Peace said anyone with information about the case, including victims, can contact the FBI at 1-800-CALLFBI or Tips@FBI.gov.

“We prosecuted R. Kelly, we brought the NXIVM case,” Peace said. “We don’t hesitate to hold the powerful and the wealthy to account if they have violated federal criminal law.”