Watch CBS News

Matthew Smith pleads not guilty to sex trafficking, interstate prostitution in case involving former Abercrombie & Fitch CEO

Former CEO of Abercrombie & Fitch used his power to traffic vulnerable men, prosecutors say
Former CEO of Abercrombie & Fitch used his power to traffic vulnerable men, prosecutors say 02:12

CENTRAL ISLIP, N.Y. - Matthew Smith walked out of federal court in Central Islip Tuesday on a $10 million bond after pleading not guilty to sex trafficking and interstate prostitution charges

The bond was cosigned by his partner Mike Jeffries, the former CEO of Abercrombie & Fitch. 

Smith, 61, had been detained until Tuesday as a possible flight risk since he is a citizen of the United Kingdom. Smith and Jeffries, romantic partners, were arrested in October for allegedly luring men more than a decade ago into taking part in drug-fueled sex parties in exchange for the promise of modeling for the teen clothing giant

BBC correspondent Rianna Croxford is credited with breaking the case when a frightened young male model contacted her. 

"He told me he felt he'd been sexually exploited by Mike Jeffries and his partner, and he described, detailed what he called a well-oiled machine," Croxford said. 

The sex events, allegedly involving "force, fraud and coercion," took place between 2008 and 2015 in New York City and the Hamptons, England, France, Italy, Morocco and St. Barts, according to the indictment. 

Jeffries left Abercrombie in 2014 as a very wealthy man. The company says it is appalled and disgusted by the allegations. 

Jeffries, Smith and the couple's alleged middleman James Jacobson all maintain their innocence. They're now all out on bond on home detention with ankle monitors, and are due back in court next week to prepare for a speedy trial or, perhaps, plea deals. 

Details laid out in the indictment

The 16-count indictment alleges that Jeffries and Smith "operated an international sex trafficking and prostitution business." and "paid for dozens of men" to travel "for the purpose of engaging in commercial sex acts."

Jacobson allegedly acted as a recruiter and had "tryouts" with potential candidates. Those "tryouts" typically involved the candidates having sex with him. 

Attendees at their "sex events" signed non-disclosure agreements, and had their phones taken. They were then given alcohol, drugs, lubricant, Viagra and condoms, according to the indictment.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.