Former Abercrombie & Fitch CEO pleads not guilty to sex trafficking and prostitution charges

CENTRAL ISLIP, N.Y. - The former longtime CEO of Abercrombie & Fitch pleaded not guilty Friday to federal sex trafficking and interstate prostitution charges.

Michael Jeffries, 80, declined to comment after his lawyer entered the plea on his behalf in federal court in Central Islip, on Long Island. He is free on a $10 million bond and is due back in court Dec. 12.

"Today’s hearing was procedural in nature, bond has been set to ensure Michael’s appearance in Court, and of course we entered a plea of not guilty," Brian Bieber, his attorney, said in an email afterward, declining to comment on the allegations.

Prosecutors allege that for years, Jeffries, his romantic partner and a third man, 71-year-old James Jacobson, lured men into taking part in sex parties by dangling the promise of modeling for the clothing retailer, once famous for its preppy, All-American aesthetic and marketing with shirtless male models.

Jacobson, who was an employee of Jeffries when prosecutors say the crimes occurred, also pleaded not guilty and declined to speak to reporters afterward. He’s free on a $500,000 bond.

In charges announced earlier this week, prosecutors say 15 accusers were induced by "force, fraud and coercion" to engage in drug-fueled sex parties in which the men were sometimes directed to wear costumes, use sex toys and endure painful erection-inducing penile injections.

The events took place between 2008 and 2015 in New York City and the Hamptons, the wealthy summertime resort on Long Island where Jeffries has a home, as well as at hotels in England, France, Italy, Morocco and St. Barts, according to the indictment.

The allegations echo sexual misconduct accusations described in media reports and made in a civil case against Jeffries, who left Abercrombie in 2014 after leading the company for more than two decades.

Jeffries initially appeared Tuesday in federal court in West Palm Beach, Florida where he was arrested with his partner, 61-year-old Matthew Smith.

But while Jeffries was released on bond, Smith was ordered detained after prosecutors raised concerns that the dual American and British citizen might flee the country. No date has been set for Smith’s arraignment.

Jacobson, who prosecutors say recruited men for the sex parties, was arrested in Wisconsin and made his initial appearance in federal court in St. Paul, Minnesota.

Jeffries took over as CEO of Abercrombie in 1992, presiding over the evolution of the company from its roots as a hunting and outdoor goods store founded in Manhattan in 1892 to a fixture of teen mall culture during the early 2000s.

Abercrombie, in a statement posted on Instagram after the arrests, said it was "appalled and disgusted" by the allegations.

The Ohio-based company, which also owns the clothing brand Hollister, said it has "transformed" its brands and culture in the decade since Jeffries departed.

Abercrombie stopped using "sexualized" photos in marketing materials and ended the practice of calling store staffers "models." It hired an outside law firm last year to conduct an independent investigation into similar allegations against Jeffries.

"Speaking up and coming forward is not easy, and our thoughts remain with those who have bravely raised their voices as part of the federal investigation," the company wrote in its statement Wednesday. "We have zero tolerance for abuse, harassment or discrimination of any kind, and are committed to fully cooperating with law enforcement as the legal process continues."

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