Former Abercrombie & Fitch Co. ANF CEO Michael Jeffries was arrested Tuesday as part of a criminal sex trafficking investigation by the FBI and federal prosecutors.
The Details: According to a report from ABC News, Jeffries' partner Matthew Smith and a third man, Jim Jacobson, were also arrested in the investigation into possible sexual exploitation and abuse of young men.
A separate civil lawsuit filed last year accused Jeffries of exploiting young men for sex at parties he hosted with Smith in New York, London, Venice and elsewhere. The alleged victims said they were recruited by Jacobson, who acted as a middleman.
One of the plaintiffs in the civil case, David Bradberry, said Jeffries drove Abercrombie's success using the “oversexualization of young men.” Bradberry's lawsuit included accusations that Jeffries, Smith, Jacobson and Abercrombie & Fitch lured young men with promises of making them an Abercrombie model and then coercing them perform sexual acts and take drugs.
An attorney for another plaintiff, Brad Edwards, told ABC News in a statement:
“As we laid out in our lawsuit, this was an Abercrombie-run, sex trafficking organization that permeated throughout the company and allowed the three individuals arrested today to victimize dozens and dozens of young, aspiring male models.”
Jeffries, who joined Abercrombie & Fitch in 1992 and led the company to its dramatic rise, stepped down in 2014 after declining performance, including 11 consecutive quarters of negative comparable-store sales.
“We will respond in detail to the allegations after the Indictment is unsealed, and when appropriate, but plan to do so in the courthouse — not the media,” Brian Bieber, an attorney for Jeffries, told ABC News.
ANF Price Action: According to Benzinga Pro, Abercrombie & Fitch shares are down 1.58% at $157.38 at the time of publication Tuesday.
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