Former Abercrombie & Fitch Chief Executive Officer Mike Jeffries was charged by the US with running a sex-trafficking ring that coerced young men to engage in sexual acts with him in hopes of a career in modeling.
Jeffries, 80, was arrested along with his romantic partner and another man, accused of one count of sex trafficking and 15 counts of interstate prostitution, according to an indictment unsealed in federal court on Tuesday.
"Aspiring fashion models knew that a place on one of Abercrombie's iconic ads could be the ticket to success," Breon Peace, the US attorney in Brooklyn, said at a news conference announcing the case. "While Jeffries was the CEO of one of the most recognizable clothing retailers in the world, he was using his power, his wealth and his influence to traffic men for his own sexual pleasure and that of his romantic partner, Matthew Smith."
If convicted of the sex-trafficking charge, the most serious, the defendants face a maximum sentence of life in prison and a minimum of 15 years behind bars.
Brian Bieber, a lawyer for Jeffries, said in a statement: "We will respond in detail to the allegations after the indictment is unsealed, and when appropriate, but plan to do so in the courthouse - not the media." A lawyer for Smith didn't immediately return voicemails and emails seeking comment. Jeremy Schneider, who represents the third defendant, James Jacobson, declined to comment.
A representative of Abercrombie, which wasn't charged, also declined to comment.
The company's shares closed down 3.2% at $154.82.
Sex 'Tryouts'
From at least late 2008 to early 2015, Jeffries and Smith spent millions of dollars to operate a "massive" sex-trafficking ring to victimize the men and "prolific amounts of money for staff to run the sex events," the US alleged.
They paid hundreds of thousands of dollars for the men to travel to their homes in the Hamptons on Long Island as well as to hotels in England, France, Italy, Morocco and the Caribbean for "sex events," according to Peace. Meanwhile, Jacobson, who worked for the couple, operated sex "tryouts" and recruited men as candidates, the US said.
The defendants allegedly used alcohol, muscle relaxants known as poppers and "force, fraud and coercion" to operate the illicit business while Jeffries and Smith relied upon their "vast financial resources" and Jeffries' position as the CEO to prey on the men. The men were required to sign nondisclosure agreements and threatened with reprisals if they complained, according to the government.
At least 15 men were lured with the promise of modeling opportunities for the fashion brand, Peace said. He said the actual number of victims may be in the "dozens and dozens" and asked any victims to come forward as the investigation continues. The FBI has also set up a hotline.
Jeffries and Smith appeared before a magistrate in federal court in West Palm Beach, Florida, on Tuesday. Jeffries was released on a $10 million bond. Smith, who is a UK citizen, was ordered held without bail. Jacobson appeared in federal court in St. Paul, Minnesota, and was released on a $500,000 bond, Peace spokesman John Marzulli said.
'All-American Look'
Jeffries was hired in 1992 by Leslie Wexner, founder of the company's former parent, Limited Brands (now L Brands), which also owned Victoria's Secret. He used racy marketing to sell an aspirational image of the "cool kid," one who plays rugby barechested and sports an "all-American" look.
Jeffries has also been sued over allegations he forced models to take drugs and engage in sex acts with him and others in exchange for the chance to be featured in the company's provocative fashion catalogs. One lawsuit against him and Abercrombie, in federal court in Manhattan, alleges that he used his position to recruit men and invite them to casting sessions at his homes in New York, the Hamptons and elsewhere.
According to the suit, filed by former Abercrombie model David Bradberry, the ex-CEO used his role "to prey upon attractive young men who believed that Jeffries was going to hire them as an Abercrombie model - the pinnacle of the modeling industry for men during the relevant time period."
Bradberry claims Abercrombie "knew that it was providing the financial lifeblood for a sex-trafficking organization led by its CEO from at least 1992 through 2014," and that there could be more than 100 victims.
Lawyers for Jeffries and Abercrombie defended themselves in a filing this month, seeking the suit's dismissal.
Prosecutor's Warning
Brad Edwards, a lawyer for Bradberry who also represents victims of Jeffrey Epstein, said the criminal charges have brought his client "an overwhelming sense of validation." He said "it took a tremendous amount of courage for each of these men to come forward and speak out."
New Albany, Ohio-based Abercrombie, once known for its perfumed stores and shirtless models, has made a comeback among Gen Z and millennial adults, reinventing its brand by embracing more inclusive sizing and expanding its denim offerings. Jeffries left the company in 2014 after the Abercrombie and Hollister clothing lines lost their cachet with teenage shoppers.
"This case should serve as a warning" Peace said at the press conference. "Sexually exploiting vulnerable human beings is a crime."
The case is US v. Jeffries, 24-cr-00423, US District Court, Eastern District of New York (Central Islip).
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