Ex-CEO of Abercrombie & Fitch arrested on sex-trafficking charges, could be jailed

James Dennehy, assistant director in charge of the FBI's New York field office speaks during a press conference held by the Department of Justice announcing indictment charges on sex trafficking and interstate prostitution against Abercrombie & Fitch CEO Michael Jeffries, along with Matthew Smith and James Jacobson. Photo / AFP

Former Abercrombie & Fitch chief executive Mike Jeffries, his romantic partner Matt Smith and their associate James Jacobson, were arrested on Tuesday and indicted by a grand jury on sex trafficking and interstate prostitution charges in New York.

Jacobson is accused of recruiting young men, often under the premise of potentially modeling for Abercrombie & Fitch, who were sexually exploited and abused at parties hosted by Jeffries and Smith between 2008 and 2015.

“Powerful individuals for too long have trafficked and abused, for their own sexual pleasure, young people with few resources and a dream, a dream of securing a successful career in fashion or entertainment,” said Breon Peace, US attorney for the Eastern District of New York.

“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.”

Jeffries and Smith will make their initial federal court appearances in Florida, and Jacobson in Minnesota, before they are all arraigned in New York.

If convicted of sex trafficking, the men face at least 15 years and up to life in prison.

The interstate prostitution charges carry a sentence of up to 20 years in prison.

Prosecutors have asked judges in a court filing to detain Smith without bond due to his United Kingdom citizenship, and they requested that Jeffries be held on bond for $10 million and Jacobson for $500,000.

“We will respond in detail to the allegations ... when appropriate, but plan to do so in the courthouse – not the media,” said Brian Bieber, attorney for Jeffries.

Prosecutors allege that dozens of men were recruited by Jacobson and forced to have sex with him before Smith picked from those candidates to engage in commercial sex with himself and Jeffries.

These alleged “sex events,” as the indictment calls them, took place at the homes of Jeffries and Smith in the Hamptons and New York City, as well as hotels internationally.

The men were allegedly unaware of the true nature of these events beforehand, but believed they could lead to modeling opportunities with Abercrombie or otherwise further their careers.

According to the indictment, the men had to sign non-disclosure agreements and were pressured to consume alcohol, Viagra and poppers, or sometimes injected with erection-inducing substances.

Breon Peace, US Attorney for the Eastern District of New York, announced the arrest of former Abercrombie & Fitch CEO Mike Jeffries, his partner Matt Smith and a third man, Jim Jacobson, and unsealed a 16-count indictment for sex trafficking and interstate prostitution. Photo / Getty Images

Jeffries, Smith and Jacobson “allegedly preyed on the hopes and dreams of their victims by exploiting, abusing, and silencing them to fulfill their own desires, with insidious secret intentions,” said James Dennehy, FBI assistant director in charge.

“This case is yet another example of individuals using their wealth, power, or reputation to manipulate and control others for their personal gratification.”

Jeffries and Smith were also named defendants in a class action lawsuit filed in October of last year accusing them of using Abercrombie as the “financial lifeblood” for international sex trafficking and sexual abuse.

Abercrombie & Fitch, which has been led by CEO Fran Horowitz since 2017 after Jeffries resigned in 2014, is in the midst of a renaissance that has seen its wearable, clean-cut (but ultimately fast fashion) clothes find a dedicated customer among Gen Z and millennials.

It is one of the rare success stories of the current American retail landscape.

But Abercrombie & Fitch developed an unsavoury reputation during the Jeffries era, which began in 1992 when he was appointed CEO by Les Wexner, the L Brands chief behind similarly lascivious mall stalwart Victoria’s Secret, who was Jeffrey Epstein’s best-known client. (Wexner spun off Abercrombie into a separate company in the late 1990s.)

Jeffries refocused what was once an adventure apparel brand on teenagers, featuring often-controversial semi-nude advertising imagery by fashion provocateur Bruce Weber and stores staffed with shirtless men and bikini-clad women.

Those elements hinted at a darker reality exposed in a 2003 class-action lawsuit and a 2022 documentary: “White Hot: The Rise and Fall of Abercrombie & Fitch” that revealed racially discriminatory hiring practices.

In 2023, a BBC investigation first surfaced many of the charges contained in the indictment.