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Former CEO of Abercrombie & Fitch, 2 other individuals charged with sex trafficking and interstate prostitution

By
Eastern District of New York, Press Release

A 16-count indictment was unsealed Tuesday in federal court in Central Islip, N.Y. charging former Abercrombie & Fitch Co. (Abercrombie) Chief Executive Officer Michael Jeffries, 80, of West Palm Beach, Fla., along with Matthew Smith, 61, of West Palm Beach, Fla. and James Jacobson, 71, of Rice Lake, Wis. with sex trafficking and engaging in interstate prostitution.

The indictment alleges that between December 2008 and March 2015, Jeffries, Smith and Jacobson used a combination of force, fraud and coercion to traffic men while operating a prostitution enterprise. All three defendants were arrested Tuesday morning.

Jeffries and Smith are scheduled to make their initial appearances Tuesday afternoon in federal court in the Southern District of Florida, and Jacobson is scheduled to make his initial appearance this afternoon in federal court in St. Paul, Minn. They will be arraigned in the Eastern District of New York at a later date.

Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, New York Field Office (FBI) and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the arrests and charges.

“As alleged in the indictment, former CEO of Abercrombie Michael Jeffries, his partner Matthew Smith and their recruiter James Jacobson used their money and influence to prey on vulnerable men for their own sexual gratification,” stated United States Attorney Peace. “Today’s arrests show that my Office and our law enforcement partners will not rest until anyone who engages in sex trafficking or interstate prostitution, regardless of their wealth or power, is brought to justice.”

Mr. Peace expressed his thanks to the FBI Miami Field Office, West Palm Beach Resident Agency; the FBI Milwaukee Field Office, Eau Clair Resident Agency; the Barron County, Wisconsin, Sheriff’s Office; and the United States Attorney’s Offices for the Southern District of Florida and the District of Minnesota, for their assistance with the case.

“Today’s indictment highlights the alleged abhorrent behavior of Michael Jeffries, Matthew Smith and James Jacobson. The defendants allegedly preyed on the hopes and dreams of their victims by exploiting, abusing and silencing them to fulfill their own desires, with insidious secret intentions. This case is yet another example of individuals using their wealth, power or reputation to manipulate and control others for their personal gratification. The FBI and our partners won’t allow these criminal acts to go unchecked, we remain committed to investigating and bringing these cases forward to prosecution,” stated FBI Assistant Director in Charge Dennehy.

“Sex trafficking remains a pressing issue nationwide and New York City is no exception,” stated NYPD Interim Commissioner Donlon. “Through our continued partnership with the FBI and the U.S. Attorney for the Eastern District of New York, the NYPD is able to enhance our investigations and secure convictions. Importantly, our close collaboration also allows us to connect survivors of this abhorrent crime with the necessary support and services they deserve.”

From approximately 1992 to 2014, Jeffries was the CEO of Abercrombie, a fashion clothing retailer that owned and operated retail stores around the world. (Editor’s note: Abercrombie is based in New Albany, Ohio.) Smith was Jeffries’ life partner. The indictment alleges that Jacobson was employed by Jeffries and Smith to recruit, interview and hire men to perform commercial sex acts for Jeffries and Smith.

As set forth in the indictment, from approximately 2008 to 2015, Jeffries, Smith and Jacobson, together with others, operated an international sex trafficking and prostitution enterprise. Jeffries and Smith not only relied on their financial resources and Jeffries’ power as the CEO of Abercrombie, but also on numerous others, including Jacobson and a network of employees, contractors and security professionals, to operate this venture, which was dedicated to fulfilling their sexual desires.

As further alleged in the indictment, Jeffries and Smith paid for dozens of men to travel within the United States and internationally to various locations, including the Hamptons on Long Island, New York City and hotels in England, France, Italy, Morocco and Saint Barthélémy, for the purpose of engaging in commercial sex acts with Jeffries, Smith and others (the “Sex Events”). Jacobson allegedly traveled throughout the United States and internationally to recruit and interview men for the Sex Events. During “tryouts” of potential candidates, Jacobson typically required that the candidates first engage in commercial sex acts with him.

The indictment alleges that Jeffries, Smith and Jacobson used coercive, fraudulent and deceptive tactics in connection with their sex trafficking and prostitution venture. For example, among other things, Jeffries, Smith, Jacobson and others acting at their direction allegedly:

• Employed a referral system and interview process that did not inform men of the details of the Sex Events before they attended, including the full extent and nature of the sexual activity that would be required of the men at the Sex Events;

• Caused men to believe that attending the Sex Events could yield modeling opportunities with Abercrombie or otherwise benefit their careers;

• Caused men to believe that not complying with requests for certain acts during the Sex Events could harm their careers;

• Required men to relinquish their personal items, including clothing, wallets and cellular phones, and store them in an inaccessible location during the Sex Events;

• Required men to sign non-disclosure agreements;

• On more than one occasion when men did not or could not consent, Jeffries and Smith violated the bodily integrity of the men by subjecting them, or continuing to subject them, to invasive sexual and violent contact by body parts and other objects;

• On more than one occasion, Jeffries and Smith directed others to inject, or personally injected, men with an erection-inducing substance for the purpose of causing the men to engage in sex acts the men were incapable or unwilling to engage in.

Many of the victims, at least one of whom was as young as 19 years old, were financially vulnerable and aspired to become models in the fashion industry. Some victims recruited by the defendants had previously worked at Abercrombie stores or had modeled for Abercrombie.

If convicted of the sex trafficking charge, the defendants each face a maximum sentence of life imprisonment and a mandatory minimum sentence of 15 years’ imprisonment. If convicted of the interstate prostitution charges, the defendants face a maximum sentence of 20 years’ imprisonment.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.

If you believe you are victim of a crime perpetrated by Michael Jeffries, Matthew Smith or James Jacobson, please contact the FBI at 1-800-CALL-FBI.

The government’s case is being handled by the Office’s Civil Rights Section and the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Megan Farrell, Erin Reid and Philip Pilmar are in charge of the prosecution with the assistance of Bilingual Victim Witness Specialist Stephanie Marroquin and Fact Witness Services Unit Supervisor/Victim Witness Coordinator Huda Abouchaer.

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