Former Abercrombie & Fitch CEO Mike Jeffries, battling sex trafficking, rape, and sexual assault charges, was released on a $10m (£7.7m) bond after a court appearance on Tuesday. His British partner, Matthew Smith, remains in custody. James Jacobson, another accused in the case, was freed on a $500,000 bond. They are scheduled to appear in court again on Friday, BBC reported.
Federal prosecutor Peace confirmed that media reports, specifically from the BBC, had initially tipped off authorities. Following BBC’s investigations, a civil lawsuit was filed in New York, accusing Jeffries and Smith of sex trafficking, rape, and sexual assault.
The lawsuit also alleges that Abercrombie & Fitch funded a sex-trafficking operation led by Jeffries during his tenure as CEO.
Brad Edwards, a civil lawyer representing some of the alleged victims, described the arrests as "a huge first step toward justice." He added, "The unprecedented reporting of the BBC, coupled with the lawsuit our firm filed detailing the operation, are to credit for these monumental arrests."
In its investigation, the BBC interviewed 12 men who said they either attended or organised events involving sex acts for Jeffries and Smith between 2009 and 2015. The report indicated that a middleman, identified as James Jacobson, recruited many of these men.
More allegations surfaced last month, with some victims claiming they were injected with what was said to be liquid Viagra by Jeffries' assistants. Jacobson, 71, denied any coercive or deceptive behaviour through his lawyer, BBC reported.
Several individuals told the BBC that they were misled or uninformed about the sexual nature of the events. Others claimed they were promised modelling opportunities with Abercrombie & Fitch in exchange for attending.
David Bradberry, a then-23-year-old aspiring model, shared with the BBC that he felt pressured to perform sexual acts in order to meet Jeffries. "It was like he was selling fame. And the price was compliance," Bradberry said.
He later attended a party at Jeffries' mansion in the Hamptons, where he felt unsafe to refuse participation due to the secluded setting and the presence of staff dressed in A&F uniforms, he told the BBC.
Following the BBC's investigative report last year, Abercrombie & Fitch announced an independent investigation into the allegations but has not disclosed when the findings will be released. The company declined to comment when asked about the status of the investigation, according to BBC.
Jeffries, Smith, and Abercrombie & Fitch are fighting to dismiss the civil lawsuit. The company has argued that it had no knowledge of Jeffries’ alleged activities. However, a US court earlier ruled that A&F must cover Jeffries’ legal fees as the accusations are tied to his corporate role.
Abercrombie has expressed that it "abhors sexual abuse and condemns the alleged conduct" in a statement provided to the court, as reported by the BBC.
Jeffries stepped down as CEO in 2014 amid declining sales and walked away with a retirement package worth $25m (£20.5m). He was once one of the highest-paid CEOs in America but was often criticised for alleged discrimination and lavish expenses, as well as the influence of his partner, Smith, within the company.