Former Abercrombie & Fitch chief Mike Jeffries arrested on federal sex trafficking charges

For almost 20 years, Jeffries, his partner Matthew Smith and their employee James Jacobson used Jeffries status, wealth and a web of household staffers to fulfill the couple's sexual desires in what amounted to an international sex trafficking and prostitution business protected by secrecy, according to an indictment unsealed in federal court in New York.

Sexually exploiting vulnerable human beings is a crime. And doing so by dangling dreams of a future in fashion or modeling ... is no different, Brooklyn-based U.S. attorney Breon Peace said at a news conference, calling the case a warning “to anyone who thinks they can exploit and coerce others by using the so-called casting couch system.

The charges follow and sometimes echo sexual misconduct accusations made in lawsuits and the media by young people who said Jeffries promised modeling work and then pressed them into sex acts.

All three defendants appeared Tuesday in various courts Jeffries and Smith in West Palm Beach, Florida, where they were taken into custody, and Jacobson in St. Paul, Minnesota, after his arrest in Wisconsin.

Jeffries wore a broad smile but didn't comment as he left the courthouse after he was released on a $10 million bond. His attorney, Brian Bieber, also didn't comment.

Smith, who is a citizen of the United Kingdom, was ordered detained after prosecutors said they were concerned he might flee the country. His lawyers Joseph Nascimento and David Raben, said by email they would respond to the allegations in court.

Jacobson did not address the allegations during his court appearance in St. Paul, other than to tell the judge I understand what they claim. He was not asked to enter a plea and was ordered released on a $500,000 bond. Jacobson has said previously that he didn't engage in or know about any coercive, deceptive or forceful behavior. Messages seeking comment were sent to Jacobson's attorney.

The three defendants are charged with sex trafficking and interstate prostitution involving 15 unnamed accusers.

The case is the latest sex crime prosecution of a prominent and wealthy man from Sean Diddy Combs to Harvey Weinstein accused of abusing his position as a star or possible star-maker, though the status of the cases and important aspects of the allegations vary. An early accuser of the late Jeffrey Epstein said he groped her during a 1997 meeting arranged as a modeling interview for the Victoria's Secret catalog.

James Dennehy, the assistant director of the FBIs New York office, called the allegations abhorrent.

According to the indictment, the three paid for dozens of men to travel within the U.S. and internationally to engage in paid sex with them and other men in New York and at hotels in England, France, Italy, Morocco and St. Barts between 2008 and 2015. The sometimes graphic indictment describes sexual bacchanals in which the recruited men were given drugs, lubricant, condoms, costumes, sex toys and, sometimes, erection-inducing penile injections that caused painful, hourslong reactions.

The men weren't told ahead of time what sexual practices they'd be expected to engage in, and they were required to give up their clothes and phones during the gatherings and sign non-disclosure agreements afterward, the indictment said. It said the men sometimes got itineraries like those sent to models for photo shoots, leaving the men in the dark about what they were signing up for.

The defendants led the men to believe that attending the events would help their careers, including their chances of getting Abercrombie modeling gigs or that not complying could harm their prospects, the indictment says.

Jeffries and Smith employed Jacobson to recruit the men, who typically had to undergo tryouts” by having sex with Jacobson first, according to the indictment. It says other, unnamed household staffers also helped facilitate the events, including by acting as security and providing alcohol, muscle relaxants, Viagra and other items.

The men were subjected to some sex acts without consent, and when witnesses threatened to expose what was going on, Jeffries and Smith used a security company to surveil and intimidate them into silence, according to a letter that prosecutors filed in court.

Peace said at the news conference that prosecutors have a lot of evidence, including travel records, financial documents and testimony from accusers and witnesses.

Jeffries became CEO of Abercrombie & Fitch in 1992 and left in 2014 . The New Albany, Ohio-based company, which also encompasses Hollister, declined to comment on his arrest.

Prosecutors don't allege that the company's resources or property were used in the alleged sex scheme.