This story was updated on Oct. 22 at 5:37 p.m. EST.
After being arrested for sex trafficking and interstate prostitution by the Federal Bureau of Investigation, former Abercrombie & Fitch chief executive officer Mike Jeffries was released on a $10 million bond Tuesday afternoon.
An alleged associate James Jacobson, who is facing the same charges, was released on a $500,000 bond. Jacobson was said to have been a middleman in recruiting men who claimed to have been paid for sex, which first came under the spotlight through a BBC investigation that was released last fall. In addition, Jeffries’ romantic partner Matthew Smith, who is also accused of sex trafficking and interstate prostitution, is being detained. Federal authorities consider Smith, who holds U.S. and U.K. passports, a flight risk.
The 80-year-old Jeffries, who exited the top job at Abercrombie & Fitch in 2014 after a 22-year run, is accused of having orchestrated a sex trafficking and prostitution enterprise that involved hiring dozens of men and transporting them around the world. Jeffries and Jacobson will be arraigned on Friday afternoon at the federal courthouse in Central Islip, N.Y., before U.S. Magistrate Judge Steven Tiscione.
If convicted of sex trafficking, each defendant faces a maximum sentence of life in prison and a mandatory minimum sentence of 15 years. If convicted of interstate prostitution charges, the defendants face a maximum sentence of 20 years in prison.
A spokesperson for Abercrombie & Fitch said Tuesday that the company does not have a comment, nor did the company comment about offering services for people allegedly abused or setting up any infrastructure, as Harrods did following the alleged sexual misconduct of its former owner Mohamed Al Fayed.
Brian Bieber, an attorney for Smith at Gray Robinson LLC, said Tuesday, “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.”
Attorney Brad Edwards of Edwards Henderson, said Tuesday, “These arrests are the first step in the path to justice for our many clients who were victims of the sex-trafficking operation that ran through the highest level of Abercrombie and Fitch for more than a decade.”
The U.S. attorney’s office of the Eastern District of New York, the Federal Bureau of Investigation and the New York Police Department held a press conference Tuesday afternoon detailing the arrests and charges in Brooklyn. Mapping out the indictment, Breon Peace, the U.S. attorney of the Eastern District of New York, alleged that the sexual trafficking and prostitution enterprise lasted at least from the end of 2008 until early 2015, hiring dozens of men and transporting them to New York and around the globe. Jeffries was said to have spent “millions of dollars on a massive infrastructure” to support it and “hundreds of thousands of dollars in cash for commercial sex,” as well as money for travel, hotel rooms and a security company, Peace said.
Fifteen John Does are named in the indictment that was revealed during the press conference. Peace said as CEO of “one of the most recognizable clothing retailers in the world,” Jeffries was using his own wealth and influence to traffic men for his own sexual pleasure and that of his romantic partner, Smith. Peace claimed Jacobson would have “try-outs” for men and would personally approve those who would be flown to Jeffries’ and Smith’s homes in New York City and the Hamptons, as well as hotels in Italy, France, Morocco and St. Barths, among other locales, for “the purpose of attending events to engaged in commercial sex.”
Peace alleged that Jeffries, Smith and Jacobson used force, fraud and coercion to traffic those men for their own sexual satisfaction, which allegedly involved the use of a referral system and interview process that did not entail “the full extent and nature of the sexual activities that would be required of the men at these events.”
The investigation is ongoing and Peace encouraged any other victims, or people with any information, to contact the FBI’s hotline: 800-CALL-FBI.
Authorities said they were first made aware of the allegations via media reports last year. Last fall the BBC’s Panorama team released “The Abercrombie Guys” documentary and podcast. Some accusers claimed they had been exploited or abused at gatherings, which were said to have been held at Jeffries’ former home in the Hamptons as well as at Claridge’s in London, La Mamounia in Morocco and Hotel du Cap-Eden-Roc in the South of France.
Some of the accusers, including one who was 19, had previously worked at Abercrombie & Fitch stores or had modeled for the brand, according to the indictment. The men were led to believe that attending such events could yield modeling opportunities with Abercrombie & Fitch or otherwise benefit their careers, according to Peace. Smith and Jeffries allegedly employed a “secret staff” to operate the events, who ensured the men signed NDAs and handed over personal items such as their phones to maintain secrecy. The men were also under the impression that not complying with sex acts at the events “could harm their careers,” and they were pressured to consume alcohol, Viagra and muscle relaxers, known as “poppers,” Peace said.
Staff also allegedly remained present during the sexual activities to ensure the men did not leave until Jeffries and Smith decided the sessions were over, Peace said. Jeffries and Smith also allegedly injected men — or had others to do so — with an erection-inducing substance, causing men to engage in sex acts they were incapable of, or unwilling to engage in, according to Peace.
A Warning to Others
Peace warned powerful individuals who have exploited or coerced young people with few resources seeking a successful career in fashion or entertainment with a casting couch system. He said, “This case should serve as a warning. Prepare to trade that [casting] couch for a bed in federal prison. The message from today’s prosecution is clear. Sexually exploiting vulnerable human beings is a crime, and doing so by dangling the dreams of a future in fashion or modeling, or any other business is no different. My office and our law enforcement partners will always prioritize standing up for victims no matter their gender and no matter how powerful the wrongdoers think they are, we will hold them to [be] accountable.”
Last month the BBC reported eight more men had come forward alleging sexual exploitation and sexual abuse that was related to incidents which were said to have occurred between 2009 and 2015. The new allegations claim for the first time that Jeffries’ staff was involved in some instances.
Abercrombie & Fitch was a small, floundering brand with a confused identity when The Limited, led by Leslie Wexner, bought the business in 1988. A&F continued to flounder with a few failed attempts to reinvent the brand, until Wexner tapped Jeffries in 1992. Jeffries, always driven, did more than invigorate the business – he completely reinvented what had once been narrowly focused on apparel and gear for affluent adventurers, who were interested in camping, hunting and hiking, into a cool, all-American apparel retailer for the college set. He rolled out hundreds of A&F stores, including large flagships on high streets in the U.S. and abroad; introduced sexualized advertising and marketing, including having shirtless, beefy male models placed at store entrances fronts, in glossy advertising and catalogues. In another unusual move, Jeffries kept certain store windows darkened to create a mystique and had eager, curious customers kept standing on line outside waiting to get in.
Breon Peace, the U.S. attorney for the Eastern district of New York, and James Dennehy, assistant director in charge of the Federal Bureau of Investigation’s New York field office, at the press conference.
Jean Palmieri/ WWD
Jeffries ultimately confronted charges that A&F’s hiring policies were discriminatory against minorities and those who didn’t physically reflect the marketing imagery. Under Jeffries, in 2003, the company faced a class-action racial discrimination lawsuit in California. The company settled the lawsuit, reportedly for $50 million, without admitting any wrongdoing.
During his 22-year run, Jeffries grew A&F from a few dozen million in revenues to a few billion in revenues. While at the helm, he continued his inventive, risky ways, launching several new brands, with their individual storylines that he thought up to give distinct identities to each and capture the imaginations of consumers. Some took off, others flopped. Among his successes were the Southern California, surf-inspired Hollister; Abercrombie Kids for children, and Gilly Hicks, for Australian-inspired loungewear and activewear, which all still exist. However, Ruehl, which attempted to provide more elevated styles for customers older than those shopping A&F, had a short run. Jeffries once said Ruehl was inspired by a fictional townhouse shop in the West Village started by a leather goods family from Germany. It had a moody, after-hours feel.
Abercrombie & Fitch models.
Courtesy Photo
Jeffries resigned from A&F Co. in 2014. After several successful years, he was never able to get the company back on solid financial footing after the Great Recession of 2008, or overcome the criticism about the provocative marketing and hiring practices he was accused of. He also had at times managed to alienate Wall Street, stating publicly at one point that he didn’t steer A&F based on Wall Street concerns.