Former Abercrombie CEO Jeffries pleads not guilty to sex trafficking

By Siddharth Cavale

CENTRAL ISLIP, New York (Reuters) -Mike Jeffries, former longtime chief executive of Abercrombie & Fitch, pleaded not guilty on Friday to charges that he ran an international sex trafficking scheme while leading the clothing retailer.

Jeffries, 80, who led Abercrombie from 1992 to 2014, entered his plea to one count of sex trafficking and 15 counts of prostitution before U.S. Magistrate Judge Steven Tiscione in Central Islip, New York, in that state's Suffolk County.

Brian Bieber, a lawyer for Jeffries, entered the plea on his client's behalf.

Jeffries wore a navy blue blazer and light gray shirt with no tie to his arraignment, and stared directly ahead much of the time, with his fingers intertwined.

He will remain free on $10 million bond, with his home in Fishers Island, New York as collateral, but subjected to home confinement with GPS monitoring.

James Jacobson, an employee of Jeffries, pleaded not guilty through his lawyer to the same charges. His bail also includes home confinement and GPS monitoring, and a $500,000 bond.

Jeffries' partner Matthew Smith, a dual U.S.-British citizen, has been ordered detained and will plead later to the same 16 charges.

Prosecutors said the alleged scheme ran from 2008 to 2015.

They said Jacobson acted as a recruiter, paid men to have sex with him, then chose who would be paid to travel to Manhattan, the Hamptons and several countries around the world to have sex with Jeffries and Smith.

Victims were led to believe their efforts could lead to modeling jobs, but the scheme's true purpose was to fulfill Jeffries' and Smith's sexual desires without tarnishing Jeffries' reputation, prosecutors said.

According to the indictment, victims were forced to consume alcohol, Viagra and muscle relaxants; use sex toys; and perform sex acts against their will. They were also required to sign nondisclosure agreements, the indictment said.

Dozens of men were victims, including 15 identified in the indictment, prosecutors said.

Each defendant faces 15 years to life in prison if convicted of sex trafficking and up to 20 years in prison if convicted of interstate prostitution.

Jeffries' and Jacobson's next scheduled court appearance is Dec. 12.

The charges echo accusations in a 2023 BBC investigation and private litigation on behalf of Jeffries' accusers.

Abercrombie has also been sued, but has denied knowing about Jeffries' alleged misconduct. The New Albany, Ohio-based company was not charged in the criminal case. Lawyers for alleged victims in the civil lawsuit could not immediately be reached for comment after Friday's hearing.

Jeffries built Abercrombie into a popular clothing brand focused on teen shoppers, using splashy, sexually charged marketing that included ads with semi-nude models.

He resigned amid falling sales and criticism he was losing his touch in keeping up with customers' changing tastes.

Abercrombie shares have fallen 11% since the close of trading on Monday, a day before Jeffries was charged.

In an online post, Abercrombie said it was "appalled and disgusted" by the accusations against Jeffries, and that it has since his departure "transformed our brands and culture into the values-driven organization we are today."

(Reporting by Jonathan Stempel in New York; Editing by Mark Porter, Diane Craft, David Bario and David Gregorio)