Former Abercrombie & Fitch CEO Mike Jeffries, his partner Matt Smith and a third man, Jim Jacobson, were arrested Tuesday as part of a criminal sex trafficking investigation by the FBI and federal prosecutors in Brooklyn, sources familiar with the investigation told ABC News.
The investigation involved whether the men sexually exploited and abused young men at parties they hosted in the United States and around the world, the sources said.
Jeffries, the former CEO who transformed Abercrombie from a traditional Ohio outfitter into a powerhouse teen fashion brand, has been accused in civil lawsuits of exploiting young men for sex at parties he hosted at his Hamptons estate in New York, London, Venice and elsewhere with his partner, Smith.
The alleged victims have said they were recruited by a middleman, Jacobson.
One of the plaintiffs, David Bradberry, a former “Below Deck” crewman, said Jeffries made Abercrombie successful by the “oversexualization of young men.”
His lawsuit accused Jeffries, Smith, Jacobson and Abercrombie itself of luring attractive young men under the guise of making them an Abercrombie model and then forcing them to take drugs and perform sex acts.
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, Smith and Jacobson are charged with sex trafficking and interstate prostitution.
Federal prosecutors acknowledged the investigation in January after alleged victims filed a civil lawsuit a year ago.
“The U.S. Attorney’s Office for the Eastern District of New York has launched a criminal investigation of the alleged events and occurrences discussed in Plaintiff’s Complaint,” prosecutors said in a court filing.
The attorney for the plaintiff, Brad Edwards of Edwards Henderson, told ABC News in a statement: “As we laid out in our lawsuit, this was an Abercrombie run, sex trafficking organization that permeated throughout the company and allowed the three individuals arrested today to victimize dozens and dozens of young, aspiring male models.”
Attorneys for Smith and Jeffries released the following identical statements:
“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.”
Jeffries became CEO of Abercrombie & Fitch in 1992 and left in 2014. The New Albany, Ohio-based company declined to comment on his arrest.