Abercrombie ex-CEO Mike Jeffries charged with sex trafficking, prostitution

Former Abercrombie & Fitch CEO Mike Jeffries was arrested in Florida and faces sex trafficking-related charges, a spokesman for federal prosecutors in Brooklyn, New York, told CNBC on Tuesday.

Two of Jeffries’ associates, Matthew Smith of West Palm Beach, Florida, and James Jacobson of Wisconsin, are also being charged in connection with the case, the spokesman said.

The criminal case comes a year after the clothing company, Jeffries and Smith were sued in Manhattan federal court for allegedly turning a blind eye to sexual misconduct by the former CEO.

Jeffries was accused in that federal civil lawsuit of operating a sex trafficking ring that exploited young men who had hoped to become models for the company.

The arrests came as Abercrombie is in the midst of a comeback under CEO Fran Horowitz, who took the reins in 2017.

The company has ditched the sexualized models and skintight clothes that made the store a go-to for teenage mall shoppers in the 1990s and 2000s, but later stirred controversy and fell out of favor with consumer trends.

Shares of Abercrombie & Fitch are up nearly 80% so far this year, after outperforming tech stars like Nvidia and Meta in 2023.

Abercrombie & Fitch declined CNBC’s request for comment.

Jeffries and Smith will make their initial court appearance later Tuesday in West Palm Beach federal court. Jacobson will be presented in federal court in Madison, Wisconsin.

All three men will be arraigned in U.S. District Court in the Eastern District of New York at a later date, the spokesman said.

Brian Bieber, an attorney for Michael Jeffries, told NBC News in a statement, “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.”

The news about Jeffries broke hours before federal prosecutors in Brooklyn were set to hold a press conference to announce the arrests of a “former CEO of a major company” and two others in a “sex trafficking and interstate prostitution case.”

That presser is set for 12 p.m. ET.

The previously filed civil lawsuit against Abercrombie alleges that the company has already settled several complaints “related to improper acts of Jeffries or Smith, some of which were related to sexual harassment or abuse.”

An amended complaint in that case, filed in September, notes that the BBC found after a 2023 investigation that “Jeffries and Smith sexually exploited what is believed to be over 100 men during Abercrombie events they hosted around the world.”

Attorney Brittany Henderson of Edwards Henderson, the law firm representing the plaintiff in the class-action case, said in a statement to CNBC, “Today’s arrests are monumental for the aspiring male models who were victimized by these individuals.”

“Their fight for justice does not end here. We look forward to holding Abercrombie and Fitch liable for facilitating this terrible conduct and ensuring that this cannot happen again,” Henderson said.

Jeffries served as CEO of Abercrombie from 1992 through 2014. Smith was described in the civil lawsuit as Jeffries’ long-time partner and “someone with apparent authority who Abercrombie allowed to work extensively for the brand despite not holding an official position within the company.”

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