Former Abercrombie & Fitch CEO Mike Jeffries has been arrested on intercourse trafficking prices, a spokesperson for federal prosecutors has stated.
Matthew Smith, Jeffries’ companion, and a 3rd man, James Jacobson, have additionally been arrested on the identical prices.
Mr Peace stated the indictment alleged Jeffries and Smith, 61, employed Jacobson, 71, “to act as a recruiter to find men”.
Jacobson would “engage in ‘tryouts’ with men across the world where he would typically pay them to engage in sex acts with him”.
Smith would then resolve who would meet him and Jeffries and the chosen males could be flown to Jeffries’ and Smith’s houses or to inns world wide “for the purpose of attending events to engage in commercial sex”.
Mr Peace alleged all three defendants “used force, fraud and coercion to traffic those men for their own sexual gratification”.
“Smith and Jeffries employed a secret staff to operate these sex events. The staff ensured that the men signed non-disclosure agreements and handed over their personal items, such as their phones, before the start of the events to maintain the secrecy of these events.”
James Dennehy, assistant director of the FBI’s New York Discipline Workplace, stated the indictment “highlights the abhorrent behaviour” of Jeffries, Smith and Jacobson.
He stated the allegations are “not only beyond disturbing, dishonourable and disgraceful but simply put, it’s criminal”.
Jeffries has been launched on bail after paying a $10m (£7.7m) bond.
Jacobson has been launched on bail after paying a $500,000 (£385,069) bond.
Smith was detained.
Jeffries and Jacobson might be arraigned on Friday at 3pm native time on the federal courthouse in Lengthy Island.
It comes after a number of sexual misconduct allegations – together with a lawsuit filed in New York final 12 months accusing Abercrombie of permitting Jeffries to run a intercourse trafficking organisation throughout his 22-year tenure.
Legal professionals for Smith didn’t instantly reply to requests for remark. A lawyer for Jacobson couldn’t instantly bereached for remark.
Legal professionals for Jeffries and Smith have beforehand “vehemently denied” any wrongdoing.
Jeffries left Abercrombie & Fitch in 2014.
Abercrombie final 12 months stated it had employed an outdoor legislation agency to conduct an impartial investigation after a report on comparable allegations was aired by the BBC.
Abercrombie & Fitch has declined to touch upon Jeffries’ arrest.