Former Abercrombie & Fitch CEO pleads not guilty to sixteen counts of sex trafficking and international prostitution

(CNN) — Former Abercrombie & Fitch CEO Michael Jeffries pleaded not guilty to a 16-count indictment at his arraignment in a New York federal court on Friday.

Jeffries was indicted Wednesday on 16 federal counts of sex trafficking and international prostitution and is accused of leveraging “a network of employees, contractors and security professionals” while he led the retailer.

Jeffries was released on $10 million bond put up by his family.

Other conditions of his release include being restricted to New York City, Long Island, and the southern district of Florida. He’s also not allowed to leave his home unless it’s for pre-approved reasons. Those pre-approved reasons include attorney visits, medical treatment and GPS monitoring. He must also surrender his passport.

“While Jeffries was the CEO of one of the most recognizable clothing retailers in the world, he was using his power, his wealth and his influence to traffic men for his own sexual pleasure and that of his romantic partner, Matthew Smith,” Breon Peace, US Attorney for the Eastern District of New York, said in a Tuesday press conference.

Smith, 61, of West Palm Beach, Florida, and another associate of Jeffries, James Jacobson, 71, of Rice Lake, Wisconsin, were also indicted as part of the case. Jacobson was employed by Jeffries and Smith to recruit, interview and hire men to perform commercial sex acts for Jeffries and Smith, according to the indictment.

His attorneys did not comment as they left the courtroom, and Jeffries is due back in court on December 12. Jacobson also pleaded not guilty. A date for Smith’s arraignment has not yet been set.

The indictment alleges that between December 2008 and March 2015, Jeffries, Smith, and Jacobson engaged in a sex trafficking scheme in which they would recruit men to engage in “sex events” at which the alleged victims were given muscle relaxants known as “poppers,” alcohol, lubricant, Viagra and condoms to perform sex acts. They were allegedly enticed into the acts with modeling and career opportunities at Abercrombie.

Jefferies stepped down as CEO of Abercrombie & Fitch in December 2014, having run the company since 1992.

“As we shared when the accusations were first made public in October 2023, we are appalled and disgusted by the alleged behavior of Mr. Jeffries, whose employment with Abercrombie & Fitch Co. ended nearly ten years ago,” Abercrombie & Fitch said in a statement Wednesday. “For close to a decade, we have successfully transformed our brands and culture into the values-driven organization we are today. 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.”

CNN’s Brynn Gingras, Kara Scannell, Laura Dolan and John Towfighi contributed to this report.

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