Former Abercrombie & Fitch CEO Mike Jeffries and his partner Matthew Smith have been arrested on charges of running a prostitution and international sex trafficking operation.
Authorities took Jeffries, Smith, and their alleged middleman, James Jacobson, into custody on Tuesday.
According to federal prosecutors, the men used force, fraud, and coercion to engage in violent and exploitative sexual acts.
The FBI began investigating Jeffries last year following a BBC investigation that uncovered claims of sexual exploitation and abuse by Jeffries and Smith at events they hosted in New York and other global locations.
The prosecution alleges that Jeffries and Smith used their wealth and power to traffic men for sexual purposes.
The couple reportedly used Jacobson to recruit men from around the world, who were then pressured into engaging in sexual acts in exchange for money.
Some men were allegedly injected with substances to enhance sexual performance when they were unwilling or unable to participate.
The indictment mentions 15 victims, but authorities believe the operation involved many more.
Jeffries was released on a $10 million bond, while Jacobson was released on a $500,000 bond. Smith remains in custody.
A civil lawsuit was also filed in New York accusing Jeffries and Smith of sex trafficking, rape, and sexual assault.
The lawsuit claims Abercrombie & Fitch funded Jeffries’ alleged trafficking operation during his tenure as CEO.
Abercrombie & Fitch has denied any knowledge of the alleged activities and has opened an independent investigation.
Jeffries, who stepped down as CEO in 2014, left the company with a $25 million retirement package after facing declining sales and controversies surrounding his leadership.
