Former Abercrombie & Fitch CEO Mike Jeffries was arrested on sex trafficking and interstate prostitution charges

NEW YORK – Former Abercrombie & Fitch CEO Mike Jeffries was arrested Tuesday on charges of sex trafficking and engaging in interstate prostitution, prosecutors announced Tuesday.

The indictment includes more than a dozen counts and includes allegations of sex trafficking between December 2008 and March 2015.

According to prosecutors, Jeffries allegedly exploited his position as the company's CEO to lure young men into sex by suggesting they become models for the fashion company.

“For too long, powerful individuals have trafficked and abused, for their own sexual pleasure, young people with few resources and a dream – the dream of securing a successful career in fashion or entertainment,” said Breon, U.S. Attorney for the Southern District of New York, Peace said. “For anyone who thinks 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.”

The FBI and the NYPD's Special Victims Unit were involved in the investigation.

“What is alleged in the indictment is not only disturbing, dishonorable and disgraceful, it is criminal,” said FBI Assistant Director James Dennehy.

Jeffries and two co-defendants, Matthew Smith and James Jacobson, were arrested Tuesday morning. Smith and Jeffries were in a relationship.

Jeffries was released on a $10 million bond and returned to his home in Palm Beach, Florida, on Tuesday. Jacobson was released on $500,000 bail. Smith was imprisoned. Jeffries and Jacobson are scheduled to appear in court on Long Island on Friday. If convicted, they face 15 years to life in prison.

Jeffries' attorney, Brian Bieber, said he would “respond fully to the allegations after the indictment is unsealed, and if necessary, but plans to do so at the courthouse – not in the media.” Smith's attorney, Joseph Nascimento, released a similar statement.

If found guilty, the men face 15 years to life in prison.

Charge details

The 16-count indictment alleges that the defendants “operated an international sex trafficking and prostitution business from approximately 2008 to 2015.” Prosecutors accuse Jeffries and Smith of “paying dozens of men” to travel domestically and internationally “to engage in commercial sexual conduct.”

Jacobson allegedly acted as a recruiter and conducted “dry training sessions” with potential candidates, which “typically required that the candidates first engage in commercial sexual acts with him.”

Prosecutors accuse Jeffries, Smith and Jacobson of “using force, fraud and coercion to abuse these men for their own sexual gratification.” They say victims were not told what sexual activities would be required of them at various “sex events.”

Employees at the “sex events” provided participants with nondisclosure agreements to sign, took their phones to maintain secrecy, and then provided them with “alcohol, muscle relaxants called “poppers,” lubricants, Viagra and condoms, among other things. “Items,” the indictment says.

“They led the men to believe that participating in these sex events could open them up to modeling opportunities at Abercrombie,” Peace said.

Prosecutors allege that in multiple cases where the victims did not consent or were unable to consent, Jeffries and Smith “violated the physical integrity of these men by subjecting or continuing to subject them to invasive sexual and violent contact with body parts and other objects.” .”

The alleged sex trafficking and prosecution took place over years.

“They spent millions of dollars on massive infrastructure to support this operation,” Peace said.

The indictment lists 15 victims, but prosecutors claim that the case actually involved “dozens and dozens of men.”

Former model Barret Pall says he was flown to Jeffries' home in New York after auditioning to model for Jacobson.

“I thought I was being given Abercrombie clothing to take part in an Abercrombie interview, and it wasn't the interview I expected. And it was the darkest experience of my life,” he said.

Pall added: “I didn’t feel free. I didn't feel like I could say no or just walk away. I felt like I was trapped.”

“The defendants allegedly preyed on the hopes and dreams of their victims by exploiting, abusing and silencing them to fulfill their own desires,” Dennehy said.

“The NYPD encourages all survivors of sexual violence to come forward, regardless of gender, immigration status, race or sexual orientation,” said Carlos Ortiz, deputy chief of the Special Victims Unit.

The FBI asks anyone who believes they are a victim or has information to call 1-800-CALL-FBI.

Jeffries has already been named in a sex trafficking class action lawsuit

Jeffries had been named previously in a class-action lawsuit accusing him of running a “widespread sex trafficking operation.” That lawsuit alleged that he allegedly used his position at the company to take advantage of young men by suggesting the company hire them as models.

The lawsuit alleged that Jeffries lured young men to his Hamptons estate for casting interviews. Once there, he allegedly made her sign nondisclosure agreements, strip naked, take drugs and perform sexual acts on him and Smith. according to the lawsuit.

Jeffries became the company's CEO in 1992 and left in 2014 with a purported retirement package worth more than $25 million, the lawsuit says. Abercrombie & Fitch said it had no comment on the arrest.

The company previously said it had hired a law firm to conduct an independent investigation into the allegations.