Former Abercrombie & Fitch CEO Mike Jeffries faces sex trafficking charges

WARNING: This story may affect those who have experienced sexual violence or know someone who has.

Former Abercrombie & Fitch CEO Mike Jeffries, his romantic partner and a third man were arrested Tuesday on charges of luring men to sex parties around the world, sometimes by promising to work as a model for the clothing retailer.

Jeffries, partner Matthew Smith and their employee James Jacobson “operated an international sex trafficking and prostitution business” from 2008 to 2015, using Jeffries' status, wealth and a network of domestic servants to fulfill the couple's sexual desires – and keeping it all secret. This emerges from an indictment unsealed in federal court in Brooklyn.

“To anyone who believes they can exploit and coerce others 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,” said the Brooklyn-based US -Attorney Breon Peace at a press conference.

“Sexual exploitation of vulnerable people is a crime. And doing so by dreaming of a future in the fashion and modeling industry is no different,” he added. James Dennehy, deputy director of the FBI's New York office, called the allegations “abhorrent.”

They follow and sometimes repeat allegations of sexual misconduct made in civil lawsuits and in the media by young people who said Jeffries lured them with the promise of modeling and then pressured them into sexual acts.

Jeffries' attorney, Brian Bieber, and Smith's attorneys, Joseph Nascimento and David Raben, said via email that they would respond to the allegations in court.

Messages seeking comment were sent to Jacobson's attorney. Jacobson has previously said he did not engage in or know of any coercive, fraudulent or violent behavior.

All three defendants were due in separate courts later Tuesday – Jeffries and Smith in Florida, where they were taken into custody, and Jacobson in St. Paul, Minnesota, after his arrest in Wisconsin.

The three face sex trafficking and interstate prostitution charges involving 15 unnamed accusers.

REGARD | The FBI details the allegations against former Abercrombie & Fitch CEO Mike Jeffries and others:

Former Abercrombie CEO accused of running 'despicable' sex trafficking business

The assistant director in charge of the FBI's New York field office says three men, including a former CEO of Abercrombie & Fitch, “used violence, fraud and coercion to induce victims to participate in their illegal operations.”

Dozens of men are forced to perform sexual acts, the indictment says

According to the indictment, between 2008 and 2015, they paid dozens of men to travel within the United States and internationally to have paid sex with them and other men in New York and at hotels in England, France, Italy, Morocco and St. Barts.

The partly graphic indictment describes sexual bacchanals in which the recruited men were given drugs, lubricants, condoms, costumes, sex toys and sometimes erection-inducing penile injections that caused painful, hours-long reactions.

The men were not informed of everything the events would entail, including some of the expected sexual practices, and were required to give up their clothing and cellphones during the meetings and sign nondisclosure agreements afterward, the indictment says.

The defendants led the men to believe that attending the events would benefit their careers, including their chances of getting modeling gigs at Abercrombie – or that failure to attend could harm their prospects, the indictment says. It said that in some cases the men were given itineraries similar to those often sent to models for photo shoots, leaving the men unclear about what they were signing up for.

Jeffries and Smith hired Jacobson to recruit and hire the men, who, according to the indictment, typically had to undergo “testing” by first having sex with Jacobson. It said other unnamed household staff also helped run the events, including by acting as security guards and providing alcohol, muscle relaxants, Viagra and other items.

Peace described them as “secret personnel” deployed specifically for these events, adding that millions of dollars were spent across the entire enterprise, including hundreds of thousands in cash to pay for commercial sex.

The defendants “used violence, fraud and coercion to traffic these men for their own sexual gratification,” Peace said.

The men were subjected to some sexual acts without consent, and when witnesses threatened to expose the incident, Jeffries and Smith used a security company to monitor and intimidate them into silence, according to a letter prosecutors presented in court had submitted.

Peace said at the news conference that prosecutors have “a lot of evidence,” including travel records, financial documents and statements from accusers and witnesses.

Jeffries became CEO of Abercrombie & Fitch in 1992 and left the company in 2014. The New Albany, Ohio-based company, which also owns Hollister and other brands, declined to comment on his arrest.

Prosecutors do not allege that any of the company's resources or property were used in the alleged sex scheme.

The allegations initially came to light in media reports

Abercrombie said last year it had hired an outside law firm to conduct an independent investigation after the BBC reported similar allegations from a dozen men.

In Tuesday's update, Peace explained that investigators only became aware of the situation through media reports.

In a lawsuit filed last year in New York, Abercrombie was accused of allowing Jeffries to run a sex trafficking organization during his 22-year tenure. It said Jeffries had model scouts scour the Internet for victims and that some potential models had become victims of sex trafficking. Bieber declined to comment on the allegations at the time.

Prosecutors believe there may be more victims beyond the 15 named in the indictment and say the investigation is ongoing.

Jeffries, Smith and Jacobson will travel to New York to be arraigned in the next few weeks after their initial court appearance, Peace said. Prosecutors are seeking “substantial” bail for Jeffries and Jacobson and incarceration for Smith, who has dual U.S. and U.K. citizenship

Jeffries sparked controversy during his tenure as CEO of Abercrombie

Abercrombie & Fitch's roots go back to a hunting and outdoor goods store founded in 1892. By the time Jeffries arrived a century later, the brand was already a retail operation.

He was credited with making it a darling of millennial teen mall culture, known for its Art Nouveau preppy aesthetic — and for its sexy ads and in-store events featuring shirtless, muscular male models.

Jeffries spoke openly about how the company sought attractive children to fit into its clothing, a remark that angered many customers. This, along with the 2008 financial crisis and subsequent recession, led some teenagers to seek out cheaper “fast fashion” chains. A&F's popularity began to wane. When Jeffries left, the company's sales plummeted, and a hedge fund pressured the board to replace him.

A few months later, the retailer announced that it would stop using “sexualized” photos in marketing materials in its stores, referring to store employees as “models” and requiring them to adhere to a “look policy.” The company told regional managers that it “does not tolerate discrimination based on body type or physical attractiveness.”

The company has recovered in recent years.