- Former Abercrombie & Fitch CEO Mike Jeffries and associate James Jacobson pleaded not guilty to federal criminal sex trafficking and interstate prostitution charges.
- A federal indictment accuses Jeffries and his romantic partner Matthew Smith of operating an international sex trafficking enterprise with Jacobson's help.
- The alleged illegal conduct took place over more than six years, a period that overlapped with Jeffries' tenure as CEO of the clothing brand.
Former Abercrombie & Fitch CEO Mike Jeffries and his associate pleaded not guilty Friday to federal criminal charges that he sexually exploited dozens of men, many of whom sought to be models for the clothing brand.
Jeffries, 80, and James Jacobson, 71, appeared in U.S. District Court in Long Island, New York, three days after being arrested on sex trafficking and interstate prostitution charges.
The graphic 16-count indictment unsealed Tuesday accuses Jeffries and his romantic partner Matthew Smith, 61, of operating an international sex trafficking enterprise over more than six years, most of which overlapped with Jeffries' tenure as CEO of Abercrombie.
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Jacobson allegedly worked as a recruiter for the "Sex Events," and would allegedly require prospective candidates to participate in "tryouts" with him.
The defendants allegedly used "coercive, fraudulent and deceptive" recruiting tactics, including by leading men "to believe that attending the Sex Events could yield modeling opportunities with Abercrombie or otherwise benefit their careers," the indictment says.
If convicted, Jeffries and Jacobson face a maximum sentence of life in prison on the sex trafficking charge alone, and a mandatory minimum of 15 years behind bars. They could also receive as much as 20 years behind bars if convicted on all 15 counts of interstate prostitution.
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"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, an attorney for Jeffries, told CNBC in a phone call after the arraignment.
Smith was also arrested Tuesday and faces the same charges. He and Jeffries were both arrested in Florida, while Jacobson was arrested in Wisconsin, where he lives.
A federal magistrate judge released Jeffries on a $10 million bond, plus home confinement and location monitoring conditions, at his initial court appearance in West Palm Beach on Tuesday afternoon.
Smith was ordered to be held in custody pending his arraignment at a later date because as a citizen of the U.K., he poses a greater flight risk.
Jacobson was released on a $500,000 bond after appearing in federal court in St. Paul, Minnesota, on Tuesday afternoon. He is also restricted to home confinement with electronic monitoring.
