According to the indictment, Jeffries, Smith and an employee of theirs, James Jacobson, allegedly ran an international sex trafficking and prostitution ring from 2008 to 2015. The illicit business allegedly involved paying for secret sex with potentially dozens of men, including 15 unnamed victims in the complaint. Jeffries and Smith used their vast wealth and power to maintain the secrecy of the activities, authorities said. Jeffries served as CEO of the expensive clothing brand from 1992 to 2014 when it reached peak popularity among teens and college students, and his activities were hidden to shield his reputation as a powerful executive. 

Jacobson, who also went by the aliases “Jim Jake,” “Mrs. Cook,” and “Todd,” according to the complaint, acted as a recruiter to seek out potential victims. He allegedly engaged in “tryouts” with people across the world where he would pay them to engage in sexual acts. After the alleged auditions, Jacobson would decide whether men would be chosen to jet to tony locales across the world including the Hamptons, England, France, and Italy. The purpose of the lavish trips was for Jeffries and Smith to engage with them in commercial sex, the complaint alleges. Jacobson was also arrested, according to authorities.

In addition to hiring men for sexual purposes, Jeffries, Smith, and Jacobson allegedly used force, fraud, and coercion to traffic their victims for their own sexual gratification, according to the indictment. Fifteen victims are listed anonymously in the indictment, but “there may be other victims out there,” said James Dennehy, assistant director in charge of the FBI’s New York Field Office, during the press conference. 

Those chosen by Jacobson didn’t know the details of the sex event ahead of time, which “caused the men to believe that attending these sex events could yield modeling opportunities with Abercrombie or otherwise benefit their careers,” Peace said. Secret staff allegedly operated the events, and they, along with the recruits, signed non-disclosure agreements and handed over all of their personal items—including their phones—before the events started.

During the alleged crimes, defendants were pressured to consume alcohol, Viagra, and muscle relaxants, and they weren’t allowed to leave without obtaining permission from Jeffries and Smith. The indictment also alleges the duo directed staff to inject victims—or personally inject themselves—with an unnamed erection-inducing substance.

“Powerful individuals for too long have trafficked and abused for their own sexual pleasure young people with few resources and a dream—a dream of securing a successful career in fashion or entertainment,” Peace said during the Tuesday press conference. “To anyone who thinks they can exploit and coerce others by using the so-called casting-couch system, this case should serve as a warning: prepare to trade that couch for a bed in federal prison.”

Brian Bieber, an attorney for Jeffries, did not respond to Fortune’s request for comment about the indictment and allegations.

Mike Jeffries has long been a ‘PR nightmare’ for the brand

Jeffries infamously said Abercrombie & Fitch was only for “cool” people. For more than a decade, the company’s glossy advertising focused on buff young men, often naked from the waist up. While the company performed well during the first half of his tenure, Jeffries was criticized for what he made of Abercrombie.

“We hire good-looking people in our stores. Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people,” Jeffries told Salon in 2013, shortly before he stepped down in 2014 after revenue fell below analysts’ predictions and 11 straight quarters of declining same-store sales. Jeffries is still technically married to Susan Marie Isabel Hansen, but they’ve lived separately for years.

Abercrombie declined to comment on Jeffries’ arrest, but at the time of an October 2023 BBC investigation, a spokesperson for the clothing brand said in a statement to Fortune the company was “appalled and disgusted” by the alleged behavior.

“This arrest is a huge step on the path to justice for the many young men who were exploited and abused by Jeffries and Smith, who used Abercrombie to pull off one of the most organized sex trafficking operations in United States history,” Brittany Henderson of law firm Edwards Henderson told Fortune in a statement. Henderson represents the plaintiffs in the case. 

“This case is yet another example of individuals using their wealth, power or reputation, to manipulate and control others for their own personal interests,” Dennehy said during the press conference.