Michael Jeffries, who was the CEO of Abercrombie & Fitch, has been arrested alongside two others for their involvement in a long-running international sex trafficking operation that prosecutors say exploited many victims and cost millions of dollars.

Jeffries, who led the clothing brand from 1992 until 2014, has been charged with Matthew Smith, 61, from West Palm Beach, and James Jacobson, 71, from Wisconsin, for crimes including sex trafficking and interstate prostitution, as stated by Breon Peace, the U.S. Attorney for the Eastern District of New York, during a press briefing.

The scheme reportedly lured young male models to events in New York and other locations worldwide, where they were coerced into sexual activities. Many believed that participating in these events would help them advance their modeling careers.

“Anyone considering exploiting others through this so-called casting couch approach should take note: you might end up trading that couch for a cell in federal prison,” Peace warned.

Brian Bieber, Jeffries’ attorney, asserted in a statement to YSL News that they will address the charges “once the indictment is publicly available, and in the courtroom, not in the media.”

Jeffries, now 80, has consistently “strongly denied” any allegations of wrongdoing, according to reports from the BBC.

Abercrombie & Fitch expressed last year that it was “appalled and disgusted” by the allegations and hired a law firm to look into claims from a BBC investigation that Jeffries had recruited young men for sex. The company declined to comment on Jeffries’ arrest and has not provided updates regarding the ongoing independent investigation into the allegations against him.

Both Jeffries and Smith appeared in a federal courtroom in West Palm Beach on Tuesday, where they may face extradition to New York. U.S. Magistrate Judge Bruce Reinhart informed them of the charges and the potential consequences.

As part of an agreement with federal prosecutors, Judge Reinhart determined Jeffries’ bond to be $10 million, backed by a property he owns in New York with his spouse, Susan Hansen Jeffries. While out on bond, Jeffries will be under house arrest at his Palm Beach home. The judge mandated that Jeffries wear a GPS tracker and restrict his travel strictly to South Florida and eastern New York.

Smith, referred to during the hearing as Jeffries’ “life partner,” did not have a similar bond arrangement and will remain in custody, although his legal team may revisit this decision in the future. Peace highlighted the risk of flight for Smith, who holds dual citizenship in the U.S. and the UK.

Jacobson, who was arrested in Minnesota, has been granted release on a $500,000 bond and is set to be arraigned in New York on Friday.

If found guilty of sex trafficking, all three defendants could face a minimum sentence of 15 years, with a possibility of life imprisonment. The charges related to interstate prostitution could result in up to 20 years in prison.

Allegations claim Jeffries trafficked men globally

According to Peace, the indictment reveals disturbing details that allege Jeffries used his position at Abercrombie and Fitch to exploit and traffic men for his and Smith’s sexual gratification. The comprehensive indictment presents a complex investigation and accuses the three individuals of taking advantage of young men in locations like New York City, the Hamptons, and various hotels worldwide, including in England, France, Italy, Morocco, and St. Barts.

Jeffries and Smith are said to have employed Jacobson as a “recruiter” to locate men and pay them for sex acts, with Smith personally selecting men to be flown to their residences or hotels “for commercial sex,” Peace stated.

They allegedly targeted heterosexual men, some of whom had previously been models for Abercrombie. The indictment claims that some victims were misled into thinking that meetings with Jeffries and Smith were for legitimate modeling opportunities.

“Many victims, including at least one as young as 19, were financially insecure and had aspirations to model in the highly competitive fashion industry,” the indictment outlined.

Peace clarified that there was no evidence suggesting Jeffries utilized Abercrombie’s resources for these alleged activities, and the incidents did not take place on corporate property.

Allegations have emerged that a “secret staff” facilitated events where victims were provided with drugs and alcohol and pressured into sexual acts. The staff reportedly kept these events hidden by collecting the men’s phones and requiring them to sign nondisclosure agreements.

According to Peace, the accused misled the men into thinking that failing to comply would jeopardize their careers. When the men were unable to provide consent, Jeffries and Smith allegedly used forceful and violent means to coerce them into sexual acts.

Peace reported that this illegal operation was in effect at least from 2008 until 2015, requiring millions of dollars to maintain its extensive infrastructure and secrecy. Beyond compensating the men for sexual services, significant funds were spent on maintaining the staff involved.

While the indictment only names 15 men as John Does, Peace indicated that prosecutors suspect there were “dozens and dozens” more victims. He expressed gratitude to those who came forward and urged any additional victims to reach out to the FBI.

“Prosecutions like this wouldn’t be feasible without the courage of victims who report their experiences to law enforcement,” Peace added.

Jeffries and Abercrombie are also facing a lawsuit

This disclosure follows a class-action lawsuit filed last year by a group of former male models from Abercrombie & Fitch against Jeffries and the company, claiming they overlooked Jeffries’ involvement in a sex-trafficking operation and numerous sexual assaults on young men.

Brad Edwards, an attorney for the plaintiffs, stated, “The four defendants, including Abercrombie & Fitch, have consistently attempted to delay our lawsuit, likely because they anticipated it would lead to criminal charges.”

The proposed class action, brought forward by former model David Bradberry in federal court in Manhattan, alleges that Jeffries coerced models into using drugs and engaging in sexual activities with him and others to earn spots in Abercrombie’s provocative advertisements. The lawsuit claims that company executives were aware of the misconduct and that Abercrombie settled with those who accused Jeffries of sexual abuse or harassment.

“In exchange for granting Jeffries power and unrestricted access to corporate resources that allowed him to exploit aspiring male models, Abercrombie knowingly benefited from Jeffries and his sex-trafficking operations, including the value he added to the brand,” the lawsuit claims.

Brittany Henderson, another attorney for some of the aspiring models, described the recent arrests as “monumental” in a statement to YSL News.

“Their quest for justice doesn’t stop here,” Henderson mentioned. “Along with supporting the criminal proceedings, our clients aim to hold Abercrombie & Fitch accountable for enabling this reprehensible behavior and ensuring it doesn’t occur again.”

Late last year, Jeffries filed a lawsuit against his former employer for not covering his legal costs. A judge ruled this year that the claims were connected to Jeffries’ corporate duties, mandating that the retailer must finance his legal defense, according to the BBC.

Who is Michael Jeffries?

Jeffries became the president and CEO of Abercrombie in 1992, at a time when the chain, previously known for selling sports gear, was part of Leslie H. Wexner’s retail group, The Limited. He was promoted to chairman in 1996, and The Limited officially spun off Abercrombie into an independent entity in 1998.

Jeffries is recognized for transforming Abercrombie into a popular brand for teenage apparel, famous for its cologne-scented stores and sensational ads featuring scantily clad models. He eventually became one of the highest-paid CEOs in the United States, with a compensation package that peaked at over $140 million.

However, his tenure was not without controversy.

Under his leadership, Abercrombie published a unique magazine-catalog featuring partially nude models alongside articles like “Drinking 101.” The brand also produced T-shirts with derogatory slogans targeting various groups and avoided selling larger sizes to maintain a specific image.

An age-discrimination lawsuit in 2012 unveiled a manual dictating the dress and behavior standards for the models and actors accompanying Jeffries on company flights. Requirements included being clean-shaven and dressed in specific attire, like boxer briefs and flip-flops, along with wearing the brand’s signature cologne.

In 2014, Jeffries unexpectedly retired at the age of 70, following a series of years marked by declining sales and a perceived disconnect with the teenage demographic.

(This story has been updated to include new information.)