Former Abercrombie & Fitch CEO Mike Jeffries, along with his partner Matthew Smith and alleged associate James Jacobson, has been arrested and charged with running a prostitution and international sex trafficking operation. Federal prosecutors accuse the trio of using force, fraud, and coercion to engage in abusive sexual acts, with an indictment revealing that there were 15 known victims, although authorities believe the actual number is much higher.
The indictment claims that Jeffries invested millions to establish a hidden infrastructure for the trafficking operation, which included international travel, accommodations, and security for illicit events. Prosecutors allege that Jeffries and Smith directed staff members to administer substances to induce erections in men who were reluctant or unwilling to participate in sexual activities.
Once approved by Jeffries, victims were reportedly flown to his residence in New York, where they were pressured to consume alcohol and drugs. Prosecutors assert that Jacobson acted as their recruiter, conducting auditions that involved sexual acts in exchange for financial compensation.
US Attorney Breon Peace stated that Jeffries exploited his wealth and status to facilitate the trafficking for personal gratification. The FBI began investigating after media reports emerged alleging the sexual exploitation of men at events hosted by Jeffries and Smith.
During a court appearance, Jeffries was released on a $10 million bond, Jacobson on a $500,000 bond, while Smith was ordered to remain in custody. The next court hearing is scheduled for Friday.
A civil lawsuit has also been filed against Jeffries, Smith, and Abercrombie & Fitch, alleging complicity in the trafficking operation during Jeffries’ tenure as CEO. An attorney representing some victims remarked that these arrests mark significant progress toward justice for those affected by the operation.
Reports feature accounts from individuals who attended events run by Jeffries, detailing instances of coercion and misunderstandings about consent. Some men claim they were misled regarding the nature of the activities or pressured into compliance. Following the allegations, Abercrombie & Fitch is conducting its own investigation into the matter, asserting that its current leadership was previously unaware of the claimed events.
Jeffries resigned from his position in 2014 amid falling sales and has faced numerous controversies throughout his career related to discriminatory practices and his extravagant lifestyle.