Former Abercrombie & Fitch CEO Mike Jeffries appears in West Palm Beach court

Ex-Abercrombie & Fitch CEO Mike Jeffries arrested on sex trafficking, interstate prostitution charge

WEST PALM BEACH - Wearing white shorts, 80-year-old Michael Jeffries walked out of federal court on Tuesday afternoon after posting a $10 million bond, and putting up as collateral a house in Fisher Island, New York.

A short time later, the former CEO of Abercombie and Fitch, arrived at his home in Palm Beach. He has been ordered to wear a GPS monitor.

"Between 1992 and 2014 Michael Jeffries was the chief executive officer of Abercrombie and Fitch," said Breon Peace, U.S. Attorney for the Eastern District of New York, where the indictment originated.

It alleges that the former CEO, his romantic partner, 61 year old Mathew Smith, and 71 year old James Jacobson worked together to recruit dozens of men in the United States and abroad, often paying them to attend sex events.

"These individuals are charged with running a prostitution and sex trafficking business using a combination of force, fraud, and coercion to induce victims into participating into their illegal operations," James Dennehy, from the FBI in New York  said.  

Jeffries and Smith were arrested in Palm Beach on Tuesday morning. 

According to federal authorities, James Jacobson, known as "Mrs. Cook," was arrested in Wisconsin. 

"Jacobson engaged in what's called 'tryouts' with men across the world where he would typically pay them to engage in sex acts with him," said U.S Attorney Breon Peace, said. "Following the tryouts with Jacobson, he would personally approve whether the men selected would meet Jefferies and Smith," said U.S Attorney Breon Peace.   

Prosecutors in New York laid out graphic details of Jeffries and Smith crimes at their homes and hotels around the world. They said 15 victims in the complaint were recruited and provided alcohol, muscle relaxer and Viagra at the sex events. 

"The defendant (Jacobson) would fly the selected men to Jefferies and Smith homes in the Hamptons, in  New York or hotels around the world with the purpose of attending events and engage in commercial sex," Peace said.

Jeffries and Jacobson will be arraigned on Friday afternoon in New York. If found guilty they could face the maximum sentence of life in prison.  

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