Matthew Smith, the partner of former Abercrombie & Fitch CEO Mike Jeffries, pleaded not guilty on Dec. 3 to charges of sex trafficking and interstate prostitution during an appearance in a New York federal court.
Smith, 61, was released under house arrest on a $10 million bond after entering the not guilty plea. He must also comply with GPS monitoring.
According to prosecutors, between 2008 and 2015, the trio engaged in the venture knowing that “force, threats of force, fraud and coercion ... and a combination of such means” would be used to cause “persons to engage in one or more commercial sex acts.”
The three men employed a “referral system and interview process” to recruit men for various sex events both within and outside of the United States, according to prosecutors.
However, they failed to inform the men of the details of such events before they attended, including the sexual activity they would be required to take part in, prosecuting attorneys state.
The trio also made their victims believe that attending such events would result in modeling opportunities with Abercrombie & Fitch or benefit their careers, or that failing to engage in the sex acts would harm their careers, prosecutors say.
On more than one occasion when the young men did not or could not consent, Jeffries and Smith “violated the bodily integrity of the men by subjecting them, or continuing to subject them, to invasive sexual and violent contact by body parts and other objects,” the DOJ said.
On some occasions, Jeffries and Smith directed others to inject, or personally injected, their victims with a substance “for the purpose of causing the men to engage in sex acts the men were incapable or unwilling to engage in,” according to the DOJ.
The three men made their alleged victims sign nondisclosure agreements banning them from telling anyone about the sex events, the DOJ said.
At least one of the alleged victims was as young as 19 years old, and many of them were financially vulnerable and aspired to become models in the fashion industry, according to the DOJ.
Both Jeffries and Jacobson have also pleaded not guilty to the charges. Smith, a dual U.S. British citizen, was initially detained pending trial after prosecutors raised concerns that he might attempt to flee the country.
Under the terms of his bail agreement, Smith, who is also the romantic partner of Jeffries, must hand over his passport.
He and Jeffries will be allowed to withdraw up to $125,000 per month from a trust set up for their benefit. Jeffries left Abercrombie & Fitch in 2014.
Smith’s attorney, Joseph Nascimento, told The Associated Press that his client is happy that prosecutors agreed to bail conditions “that will allow Mr. Smith to respond to these allegations in court while on home confinement.”
The Epoch Times contacted Smith’s attorney for further comment but received no reply by publication time.
The company also noted it is committed to fully cooperating with law enforcement as legal proceedings continue.
The Epoch Times contacted a lawyer for Jeffries for comment and reached out to the DOJ for further information regarding Jacobson’s legal representation but received no responses by publication time.
