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topicnews · October 23, 2024

Former Abercrombie CEO indicted for running sex trafficking ring

Former Abercrombie CEO indicted for running sex trafficking ring

The former CEO of Abercrombie & Fitch (A&F) and his partner were arrested and charged with operating a prostitution and international sex trafficking business.

On Tuesday morning, authorities arrested former fashion executive Mike Jeffries, his partner Matthew Smith and the couple’s alleged middleman – James Jacobson.

Federal prosecutors said the men used force, fraud and coercion to carry out “violent and exploitative” sexual acts.

Mr Jeffries and his partner have previously denied any wrongdoing through their lawyers, and Mr Jeffries’ lawyer told the BBC on Tuesday that they would “respond in detail to the allegations following the unsealing of the indictment”.

A lawyer for Mr. Smith has been contacted for new comment. A&F declined to comment on the latest developments.

Warning: This story contains descriptions of sexual acts

The FBI launched an investigation last year after the BBC uncovered allegations that Mike Jeffries and his partner sexually exploited and abused men at events they hosted at their New York residences and hotels around the world.

The BBC investigation found that it was a sophisticated operation involving a middleman and a network of recruiters tasked with finding men for these events.

On Tuesday, the U.S. attorney for the Eastern District of New York, Breon Peace, alleged that Mr. Jeffries used his wealth, power and status as CEO of A&F “to solicit men for his own sexual pleasure” and for the pleasure of his partner, Lord, to act blacksmith.

Summarizing prosecutors’ allegations, Mr. Peace alleged that the couple hired Mr. Jacobson as their recruiter who would conduct tryouts with men from around the world by engaging them in sexual acts in exchange for money.

Once Mr Jeffries agreed to the men, they would be flown to his home in New York, where they were “pressured to consume alcohol, Viagra and muscle relaxants”, Mr Peace claimed.

Prosecutors also alleged that Mr. Jeffries and Mr. Smith directed others or personally “injected an erection-inducing substance” into men when they were unable or unwilling to do so.

The former CEO “spent millions of dollars on a massive infrastructure to support this operation and maintain its secrecy,” prosecutors said. This included international travel, hotel accommodations, paid staff and security for the events.

Prosecutors said the indictment named 15 victims but claimed the operation “involved dozens and dozens of men.”

After a court appearance on Tuesday, Mr Jeffries was released on $10 million (£7.7 million) bail, while Mr Jacobson was released on $500,000 bail. They will next appear in court on Friday.

Mr Smith’s detention was ordered.

Mr. Peace, the federal prosecutor, confirmed at a news conference on Tuesday that the authorities were initially informed by media reports.

Following the BBC’s reporting, a civil lawsuit was also filed in New York accusing Mr. Jeffries and Mr. Smith of sex trafficking, rape and sexual assault.

The lawsuit also accused Abercrombie & Fitch of funding a sex trafficking operation run by its former CEO during the two decades he was at the helm.

Brad Edwards of Edwards Henderson, a civil attorney representing some of the alleged victims, said earlier Tuesday: “These arrests are a great first step toward justice for the many victims who have been exploited and abused by this sex trafficking system. ” for many years under the legitimate cover provided by Abercrombie.

“The BBC’s unprecedented reporting, coupled with the lawsuit filed by our firm detailing the operation, are the reason for these monumental arrests. This was the result of impressive investigative journalism.”

In its first investigation, the BBC spoke to 12 men who described attending or organizing events involving sexual acts for Mr Jeffries, 80, and his British partner Mr Smith, 61, between 2009 and 2015.

The eight men who attended the events said they were recruited by an intermediary who the BBC identified as James Jacobson.

Then, Last month, more men came forward. Some of Mr Jeffries’ alleged assistants had allegedly injected liquid Viagra into their penises.

Mr Jacobson, 71, previously told the BBC in a statement through his lawyer that he was annoyed by suggestions of “any coercive, deceptive or violent behavior on my part” and had “no knowledge of any such behavior by others”.

The BBC also interviewed dozens of other sources, including former Household staff.

Some of the men the BBC spoke to said they were misled about the nature of events or were not told that sex was involved. Others said they understood the events would be sexual in nature, but not exactly what was expected of them. Everyone was paid.

Several told the BBC that the middleman or other recruiters had raised the possibility of applying to A&F as a model.

David Bradberry, then 23 and an aspiring model, said it was “made clear” to him that without oral sex with Mr Jacobson he would not meet A&F CEO Mr Jeffries.

“It was like he was selling fame. And the price was compliance,” Bradberry told the BBC.

Mr. Bradberry said he later attended a party at Mr. Jeffries’ mansion in the Hamptons on Long Island, where he met Mr. Jeffries and had sex with him.

He said the “remote” location and the presence of Mr Jeffries’ personal staff, dressed in A&F uniforms, overseeing the events meant he “didn’t feel safe, ‘No’ or ‘I’m not comfortable with this.’ ‘ to say.”

After the BBC’s initial investigation was published last year, A&F announced it would launch an independent investigation into the allegations made. When we recently asked when this report would be completed and whether the results would be made public, the company declined to answer.

Like Mr. Jeffries and Mr. Smith, the brand has sought to dismiss the civil lawsuit filed against it, saying it had no knowledge of “the alleged sex trafficking enterprise” run by its former CEO that it was accused of funding.

Earlier this year, a US court ruled that A&F must cover Mike Jeffries’ legal defense costs as he continues to fight civil charges of sex trafficking and rape. The judge concluded the allegations were related to his corporate role after he sued the brand over its refusal to pay his legal fees.

The brand said it did not comment on legal issues. However, in its defense tendered to the court, A&F said its current management team was “previously unaware of the allegations” until contacted by the BBC, adding the company “abhors sexual abuse and condemns the alleged conduct” of it Mr Jeffries and others.

In 2014, Mr Jeffries stepped down as CEO amid declining sales and left the company with a retirement package worth around $25m (£20.5m), company filings at the time show.

Once one of America’s highest-paid CEOs, he was a controversial figure who faced allegations of employee discrimination, concerns about his lavish spending and complaints about his partner Matthew Smith’s unofficial influence at A&F.