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Ex-Abercrombie CEO Jeffries Pleads Not Guilty to US Charges

Mike Jeffries, center, exits federal court in Central Islip, New York, on Oct. 25. (Yuki Iwamura/Photographer: Yuki Iwamura/Bloom)

(Bloomberg) -- Former Abercrombie & Fitch Chief Executive Officer Mike Jeffries pleaded not guilty to running a sex-trafficking ring that coerced young men to engage in sexual acts with him in hopes of a career in modeling for the brand.

Jeffries, 80, entered his plea in federal court on Friday after his arrest Tuesday along with two other men. The three were charged with one count of sex trafficking and 15 counts of interstate prostitution. 

Prosecutors for Breon Peace, the US attorney for the Eastern District of New York, allege Jeffries used his wealth and power to traffic men around the world for the encounters with him and his romantic partner, Matthew Smith. They claim the third defendant, James Jacobson, procured the men for the couple through sexual “tryouts.”

“Aspiring fashion models knew that a place on one of Abercrombie’s iconic ads could be the ticket to success,” Peace said at a news conference announcing the case on Tuesday. 

Abercrombie, which wasn’t charged, has said it is “disgusted” by Jeffries’ alleged conduct, that his tenure at the company ended nearly 10 years ago and that it is “fully cooperating with law enforcement.”

Jeffries and Jacobson appeared Friday in Central Islip before Magistrate Judge Steven Tiscione to be arraigned. Smith remains in federal custody in Florida. If convicted of the most serious charge of sex trafficking, the defendants face a maximum sentence of life in prison and a minimum of 15 years, according to John Marzulli, a spokesman for Peace. 

Brian Bieber, a lawyer for Jeffries, declined to comment after court. Jeffries remains free on a $10 million bond, which was secured with the signatures of his wife and son, who were in court on Friday. The magistrate said Jeffries must confine his travel to New York, Long Island and the Southern District of Florida. 

Jacobson also pleaded not guilty at the hearing Friday, and his bail was set at $500,000. Jeremy Schneider, Jacobson’s lawyer, also declined to comment after the hearing. Jacobson and Jeffries were ordered by the magistrate to return to court on Dec. 12.

Jeffries has been sued over allegations he forced models to take drugs and engage in sex acts with him and others in exchange for the chance to be featured in the company’s provocative fashion catalogs. He has also denied wrongdoing in the civil litigation.

New Albany, Ohio-based Abercrombie, once known for its perfumed stores and shirtless models, has made a comeback among Gen Z and millennial adults, reinventing its brand by embracing more inclusive sizing and expanding its denim offerings. Jeffries, hired in 1992, left the company in 2014 after the Abercrombie and Hollister clothing lines lost their cachet with teenage shoppers.

The case is US v. Jeffries, 24-cr-423, US District Court, Eastern District of New York (Central Islip).

--With assistance from Julia Fanzeres.

(Updates Jacobson pleading not guilty, defense lawyers declining to comment.)

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