Mike Jeffries, the former CEO of Abercrombie & Fitch, and his alleged accomplice, James Jacobson, pleaded not guilty on Friday to charges of sex trafficking and interstate prostitution during a brief court appearance in Central Islip, New York.
Entering the courtroom, Jeffries did not acknowledge Jacobson and allowed his attorney, Brian H. Bieber, to speak on his behalf. “We plead not guilty, your honor,” Bieber stated.
Jeffries remains free on a $10 million bond posted during his initial court appearance in West Palm Beach, Florida. However, he has surrendered his passport and must stay confined to his homes in Florida, New York City, or Long Island, where he is monitored by GPS. Jacobson’s bond is set at $500,000, and he has been ordered to stay in Rice Lake, Wisconsin, also under GPS monitoring.
Jeffries’ partner, Matthew Smith, was arrested on similar charges but was not present at the arraignment. Smith, a U.K. citizen, is still in custody in West Palm Beach as bail arrangements are being negotiated and has not yet been given a court date.
The trio faces one count of sex trafficking and 15 counts of interstate prostitution related to 15 alleged victims. They are prohibited from contacting one another.
Bieber stated earlier this week, “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.”
According to the federal indictment, Jeffries, Smith, and Jacobson allegedly operated an “international sex trafficking and prostitution business” from 2008 to 2015. They reportedly organized “sex events” in locations including England, France, Italy, Morocco, St. Barts, New York City, and the Hamptons.
The indictment claims they employed coercive and deceptive tactics to recruit and manage male participants, most of whom were aspiring models. Many were led to believe that not complying with requests during these events could harm their careers. Prosecutors noted that some victims were as young as 19 and had been financially vulnerable while trying to break into the competitive fashion industry.
The indictment alleges that the accused paid certain household staff to facilitate these events, ensuring that participants surrendered their belongings and provided items such as alcohol, muscle relaxants, and condoms. Payments to the participants were allegedly made by Jacobson or the staff.
Additionally, the trio reportedly employed a security company to administer nondisclosure agreements, conduct background checks, and intimidate victims when necessary. They also used burner phones for communication to avoid detection.
Breon Peace, the U.S. attorney for the Eastern District of New York, indicated that Jeffries and Smith invested millions into this operation, paying their staff and ensuring silence from those involved. Some victims received direct cash payments totaling “hundreds of thousands of dollars.”
According to the indictment, the recruitment process involved interviews where potential participants were kept unaware of the details of the events until they arrived. During “tryouts,” Jacobson allegedly required candidates to engage in sexual acts with him first.
Prosecutors allege that Jeffries and Smith sometimes administered a prescription-grade substance to induce erections in participants who were otherwise unwilling or unable to engage in sex acts. They have also been accused of violating the bodily integrity of some individuals during these events.
Federal investigators became aware of the allegations against Jeffries through media reports. A BBC article published last year detailed accusations that Jeffries exploited men at sex parties he hosted, with multiple attendees claiming they were coerced or exploited.
Following the BBC report, both Jeffries and Abercrombie & Fitch were sued for allegedly ignoring these accusations. This civil suit remains unresolved, with claims that Jeffries sexually abused several men after luring them with modeling contracts.
Jeffries led Abercrombie & Fitch from 1992 to 2014, a period during which the company enjoyed significant financial success but also faced intense criticism for its practices, including accusations of discrimination and the use of predominantly white models.
