Former Abercrombie CEO was accused of running a sex trafficking ring

The former CEO of Abercrombie & Fitch (A&F) and his partner were arrested and charged with running an international prostitution and sex trafficking ring.

Authorities arrested former fashion executive Mike Jeffries, his partner Matthew Smith and the pair’s alleged middleman – James Jacobson – on Tuesday morning.

Federal prosecutors said the men used force, fraud and coercion to commit “violent and exploitative” sex acts.

Mr Jeffries and his partner have previously denied any wrongdoing through their lawyers and Mr Jeffries’ lawyer told the BBC on Tuesday that they would “respond in detail to the allegations after the indictment.” status is revealed”.

A lawyer for Mr Smith has been approached for new comment. A&F declined to comment on the latest developments.

Warning: This story contains descriptions of sexual conduct

The FBI launched an investigation last year after the BBC revealed allegations that Mike Jeffries and his partner sexually exploited and abused men at events they hosted at mansions and guests. New York hotels around the world.

the BBC investigation discovered that there was a complex operation involving a middleman and a network of recruiters tasked with finding men for these events.

On Tuesday, the United States attorney for the Eastern District of New York, Breon Peace, alleged that Mr. Jeffries used his wealth, power and status as CEO of A&F “to trafficking in men for his own sexual pleasure” and for the pleasure of his partner, Mr. Smith.

Presenting the prosecutors’ allegations, Mr. Peace accused the couple of hiring Mr. Jacobson as a recruiter who would conduct “trials” with men from around the world by luring them having sex in exchange for money.

Once Mr. Jeffries approved the men, they were taken to his home in New York, where they were “pressured to take alcohol, Viagra and muscle relaxants,” Mr. Peace claimed.

Prosecutors also allege that Mr. Jeffries and Mr. Smith directed others or personally “injected men with erection stimulants” when they were unable or unwilling to participate.

Prosecutors said the former CEO “spent millions of dollars on massive infrastructure to support this operation and maintain its secrecy,” including international travel, stays in hotels, paid staff and security for events.

Prosecutors said there were 15 victims mentioned in the indictment but alleged that the operation “included dozens of men.”

After appearing in court on Tuesday, Mr. Jeffries was released on $10 million bail, while Mr. Jacobson was released on $500,000 bail. They will next appear in court on Friday.

Mr. Smith was ordered detained.

Mr. Peace, the federal prosecutor, confirmed in a news conference Tuesday that authorities were initially tipped off by the press.

According to the BBC report, a civil lawsuit has also been filed in New York accusing Mr. Jeffries and Mr. Smith of sex trafficking, rape and sexual assault.

The lawsuit also alleges Abercrombie & Fitch funded a sex trafficking operation led by the company’s former CEO during the two decades he was in charge.

Earlier on Tuesday, Brad Edwards of Edwards Henderson, a civil defense attorney representing some of the alleged victims, said: “These arrests are the first big step toward justice for many of the victims.” victims were exploited and abused through this sex trafficking scheme that operated for many years under the legal cover provided by Abercrombie.

“The BBC’s unprecedented reporting, along with the lawsuit our company filed detailing the operation, is what led to these large-scale arrests. This is the result of our journalism.” impressive investigation.”

In its initial investigation, the BBC spoke to 12 men who described attending or organizing events involving sexual activity organized by Mr Jeffries, 80, and his British partner Mr Smith , 61 years old, performed from 2009 to 2015.

Eight men who attended the events said they were recruited by a middleman whom the BBC identified as James Jacobson.

Afterward, Many men arrived last month. Several people believed to be Mr. Jeffries’ assistants injected their penises with what they were told was liquid Viagra.

Mr Jacobson, 71, previously told the BBC in a statement through his lawyer that he was offended by the suggestion of “any coercion, fraud or coercion on my part.” ” and “ had no knowledge of any such conduct by others.”

The BBC also interviewed dozens of other sources, including the family’s former maids.

Several men interviewed by the BBC said they were misled about the nature of the incident or were not told that sex was involved. Others said they understood the events would be sexual in nature, but not exactly what was expected of them. All have been paid.

Several people told the BBC that intermediaries or other recruiters had raised the possibility of modeling opportunities for A&F.

David Bradberry, then 23 and an aspiring model, said he “made it clear” that if he did not perform oral sex on Mr. Jacobson, he would not be able to meet the A&F CEO, Mr. Jeffries.

Mr Bradberry told the BBC: “It’s like he’s selling his reputation. And the price to pay is compliance.”

Mr. Bradberry said he later attended a party at Mr. Jeffries’ mansion in the Hamptons on Long Island, where he met Mr. Jeffries and had sex with him.

He said the “isolated” location and the presence of Mr Jeffries’ personal staff, dressed in A&F uniform, supervising events meant he “did not feel safe saying ‘no’ or ‘I don’t feel comfortable with this'”.

After the BBC’s initial investigation was announced last year, A&F announced it would launch an independent investigation into the allegations raised. When we recently asked when the report would be completed — and whether the findings would be made public — the company declined to answer.

Like Mr. Jeffries and Mr. Smith, the brand is trying to have the civil lawsuit against it dismissed, arguing that it had no knowledge of the “alleged sex trafficking venture” headed by its former CEO. head – which they allegedly funded.

Earlier this year, a US court ruled that A&F must cover the costs of Mike Jeffries’ legal defense as he continues to fight civil charges of sex trafficking and rape. The judge ruled the charges were tied to his corporate role after he sued the brand for refusing to pay its legal fees.

The brand said it does not comment on legal matters. However, in its defense submitted to the court, A&F said its current leadership team was “previously unaware of” the allegations until the BBC contacted them, adding that the company “abhors sexual abuse and condemns the alleged conduct” of Mr. Jeffries and others.

In 2014, Mr. Jeffries resigned as CEO after sales slumped and walked away with a retirement package worth about $25 million, according to company records at the time.

Once one of America’s highest-paid CEOs, he was a controversial figure who faced accusations of employee discrimination, concerns about his lavish spending and complaint about the unofficial influence of his partner, Matthew Smith, in A&F.