Former Abercrombie CEO allegedly exploited his power, wealth, and influence to traffic vulnerable men, according to prosecutors.

Former Abercrombie & Fitch (A&F) CEO Mike Jeffries, his partner Matthew Smith, and their alleged middleman James Jacobson were arrested and charged with operating a prostitution and international sex trafficking ring.

The arrests took place on Tuesday morning, with federal prosecutors accusing the men of using force, fraud, and coercion to engage in "violent and exploitative" sexual acts. Jeffries and Smith have denied any wrongdoing through their legal representatives, with Jeffries’ lawyer stating they will respond to the allegations once the indictment is unsealed.

The FBI initiated an investigation last year after the BBC published claims that Jeffries and Smith exploited men at events they hosted in their New York homes and hotels worldwide. The investigation uncovered a sophisticated operation involving recruiters who sought out men for these events.

U.S. Attorney for the Eastern District of New York, Breon Peace, alleged that Jeffries exploited his wealth, power, and status as CEO of A&F to "traffic men for his own sexual pleasure" and that of his partner. The couple allegedly employed Jacobson to conduct "tryouts," during which men were engaged in sexual acts in exchange for money. Once approved, these men were flown to Jeffries' New York residence, where they were pressured to consume alcohol, Viagra, and muscle relaxants.

Prosecutors also alleged that Jeffries and Smith directed others or personally injected men with substances to induce erections when they were unable or unwilling to participate. They claimed that Jeffries spent millions on the operation's infrastructure, which included international travel, hotel stays, paid staff, and security for events. The indictment mentions 15 victims but suggests that the operation may have involved many more.

Following a court appearance on Tuesday, Jeffries was released on a $10 million bond, while Jacobson was released on a $500,000 bond. Smith was ordered to remain in custody. Peace confirmed that authorities were initially alerted by media reports. A civil lawsuit has also been filed in New York, accusing Jeffries and Smith of sex trafficking, rape, and sexual assault, and alleging that A&F funded Jeffries’ operation during his tenure as CEO.

Brad Edwards, a civil attorney representing some victims, stated that the arrests are a significant step toward justice for those exploited in the trafficking scheme. The BBC's investigation included interviews with 12 men who attended or organized events involving Jeffries and Smith from 2009 to 2015. Many described being misled about the events' nature, with some reporting coercive tactics and the promise of modeling opportunities.

In response to the BBC's investigation, A&F announced it would conduct an independent investigation into the allegations but declined to provide updates on its findings. A&F has been attempting to dismiss the civil lawsuit, claiming ignorance of any sex trafficking venture led by its former CEO. Earlier this year, a U.S. court ruled that A&F must cover Jeffries' legal defense costs as he contests the civil allegations, which are tied to his corporate role.

Jeffries stepped down as CEO in 2014 amid declining sales, leaving with a retirement package valued at approximately $25 million. His tenure was marked by controversy, including claims of discrimination, lavish expenses, and the influence of his partner, Matthew Smith, within the company.