Former Abercrombie & Fitch CEO Charged with Sex Trafficking

By Jonathan Stempel

NEW YORK (Reuters) – Mike Jeffries, the former longtime chief executive of Abercrombie & Fitch, has been criminally charged with sex trafficking and prostitution involving dozens of men.

The 16-count indictment was unveiled on Tuesday by federal prosecutors in Brooklyn a decade after Jeffries left the retailer he built over 22 years into a popular clothing brand known for sexually charged marketing.

It followed a BBC investigation and proposed class action lawsuit accusing Jeffries of baiting young men with the prospect of modeling jobs to lure them into traveling around the world so they could be sexually abused.

U.S. Attorney Breon Peace, whose office won a conviction and 30-year prison term for the singer R. Kelly for sex trafficking, stated that powerful people have for too long sexually abused young people who yearned for careers in fashion and entertainment.

> "To anyone who thinks they can exploit and coerce others by 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," Peace said at a press conference.

The defendants include Jeffries, 80, his partner Matthew Smith, 61, and James Jacobson, 71, who allegedly recruited men for them.
Each was charged with one count of sex trafficking and 15 counts of interstate prostitution related to 15 unnamed victims between 2008 and 2015.
If convicted, they face possible life sentences and mandatory minimum 15-year prison terms for the sex trafficking charges. They face up to 20 years in prison for the interstate prostitution charges.

In separate court hearings, Jeffries and Jacobson were ordered released on respective bonds of $10 million and $500,000.

A spokesperson for Peace stated they are expected to enter formal pleas on Friday afternoon in the Central Islip, New York federal court. Prosecutors want both men subjected to home confinement.

Smith, a dual U.S.-British citizen, was ordered detained at his court hearing, with prosecutors wanting him jailed pending trial due to the risk of flight.

Jeffries' lawyer Brian Bieber and Smith's lawyers did not immediately respond to requests for comment after the hearings. Jeremy Schneider, a lawyer for Jacobson, declined to comment.

Abercrombie also declined to comment. It was not accused of wrongdoing, with Peace stating there was no evidence the alleged crimes took place on company property.

'Tryouts' and 'Poppers'

Prosecutors claimed Jeffries and Smith paid for dozens of men to meet them for sex at their homes in Manhattan and in the Hamptons in Long Island, New York, as well as at hotels in various countries including England, France, Italy, Morocco, and St. Barts.

Relying on their wealth and Jeffries' power at Abercrombie, they were allegedly "dedicated to fulfilling their sexual desires and ensuring that their international sex trafficking and prostitution business was kept secret, thereby maintaining Jeffries' powerful reputation," according to the indictment.

Jacobson reportedly conducted "tryouts," where male recruits as young as 19 would have sex with him before being referred to Jeffries and Smith.
The scheme supposedly involved muscle relaxants known as "poppers" and props such as large sex toys and high-pressured enemas.

Men were required to sign non-disclosure agreements and pay damages if they disclosed any details, including to family and friends.

The proposed class action led by named plaintiff David Bradberry, who participated in the BBC probe, separately accused Abercrombie of paying off people who claimed Jeffries had sexually abused or harassed them.

Abercrombie, Jeffries, and Smith asked a federal judge on Oct. 4 to dismiss that case. The New Albany, Ohio-based company expressed being "shocked and appalled" by the allegations against Jeffries, claiming it was implausible that it had any involvement.

Jeffries led Abercrombie from 1992 to 2014, transforming it into a successful teen apparel brand known for cologne-filled stores and ads featuring semi-nude models.
He resigned amid criticism from investors and analysts for failing to adapt to changing tastes of teen shoppers.