World Of Secrets - The Abercrombie Guys: 11. Mike Jeffries Under Arrest

Episode Date: October 26, 2024

"Anyone who thinks they can exploit others by using the so-called casting couch system... prepare to trade that couch for a bed in federal prison."Prosecutors in New York send a stern message, as The Abercrombie Guys, Mike Jeffries and Matthew Smith, are arrested on charges of sex trafficking and interstate prostitution, along with their alleged fixer Jim Jacobson. They've denied wrongdoing.Reporter Rianna and producer Ruth head to New York to watch the court proceedings unfold, just a stone's throw from Mike Jeffries' Hamptons mansion.

This BBC podcast is supported by ads outside the UK. BBC Sounds, music, radio, podcasts. Hello, it's Rhianna. I'm back and I've got some big news. We're here today to announce the arrest and charging of three defendants. Former CEO of Abercrombie & Fitch, Michael Jeffries, Matthew Smith and James Jacobson, on charges of sex trafficking and engaging in interstate prostitution. A year on since we first published our investigation, the Abercrombie guys are under arrest, along with their alleged fixer,

Jim Jacobson. While Jeffries was the CEO of one of the most recognisable clothing retailers in the world, he was using his power, his wealth and his influence to traffic men for his own sexual pleasure and that of his romantic partner, Matthew Smith. Speaking at a press conference held by the US Department of Justice, US Attorney for the Eastern District of New York, Breon Peace, sent a striking message. Powerful individuals for too long have trafficked and abused for their own sexual pleasure young people with few resources in a dream. A dream of securing a successful career in fashion or entertainment. 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. I knew the FBI had started investigating the Abercrombie guys immediately after our story first published last October. For months this year, various sources I'm in touch with had been speculating that an arrest was imminent. But months passed and nothing. Until finally, it happened. This morning, I got a call from a source telling me that Mike Jeffries, Matthew Smith and Jim Jacobson had been arrested.

I've been getting messages all morning from sources, from the men affected. They are shocked. They are telling me that they can't believe this is happening. And once again, the story of the Abercrombie guys went around the world. The former CEO of clothing store Abercrombie & Fitch has been arrested on sex trafficking and interstate prostitution charges. Jeffries, who stepped down from Abercrombie in 2014, is accused by law enforcement of using his power and wealth to traffic and sexually exploit more than a dozen young men around the world, many of them aspiring models. Prosecutors claim the former CEO and other defendants sold aspiring models the dream of success

at the price of their sexual compliance. Prosecutors have accused Mike Jeffries, Matthew Smith and James Jacobson of using force, fraud and coercion to lure men to sex events around the world. Events I first revealed because of the bravery of the men I've met over the past few years. Men who decided to share their stories with me and you on this podcast. Some of the men we've heard from were subsequently interviewed by the FBI, and it's their testimony and that of others,

which is now at the heart of this criminal case. Now, this investigation remains ongoing. Although there are 15 John Does identified as victims in this indictment, this interstate prostitution venture encompassed dozens and dozens of men. Over the past year, the FBI has been investigating across the U.S. and covering a similar paper trail of documents and records which I first laid hands on and which helped me expose the extent of the Abercrombie guys' international operation. We have substantial evidence. We have travel records, we have financial records,

we have testimony of victims and other witnesses. So we think we have a lot of evidence that corroborates the charges in this case. All three men accused have previously denied allegations of wrongdoing. Since their arrest, lawyers for Mike Jeffries and Matthew Smith have declined to comment, saying they would do so when appropriate, and that they'll respond in the courthouse, not the media. The Abercrombie guys were arrested in their current hometown of Palm Beach in Florida. Jim Jacobson was arrested in his home state of Wisconsin.

All three men will now appear in court in New York, where the charges against them will be read in full. Now, producer Ruth and I are on our way to watch it all unfold. From the BBC, this is World of Secrets. I'm Rhianna Croxford, back with Season 1 of The Abercrombie Guys, a BBC Radio 5 Live and BBC Panorama investigation. Episode 11, The Abercrombie Guys, Under Arrest. Hi.

Hey, good morning. Morning. How did you sleep? Did you manage to? No. Oh. No, I'm fine. I think it's just sinking in. I've spent years investigating the Abercrombie guys, starting with a chance phone call with a former model,

leading me to more men who say they suffered immense harm. I can't believe after all this time, today's going to be the day that I'm finally face-to-face with Mike Jeffries. Just a reminder, if you haven't already, you may want to listen back from episode one. If you want to hear how we got to this moment, do give it a listen. So we've got a few hours before the court case. I know you've got a long time, but I also know that all of the news requests are coming through, so... OK. It's Friday 25th October.

We're heading to court in a couple of hours. But first, we're sitting down with the indictment to get our heads around the detail of the allegations. So I've got all three documents of the criminal docket United States of America against Michael S. Jeffries, Matthew C. Smith and James T. Jacobson. But there are these weird aliases for Mr Jacobson, the middleman who, you know, the men have described as wearing a snakeskin nose patch.

Jim, Jake, Todd and Mrs Cook. I've never heard that before. I mean, I've had loads of email addresses from him, but I've never heard that one before. Mrs Cook? I don't know what that's about. It says right here that between 2008 and 2015, Mike Jeffries, Matthew Smith and Jim Jacobson,

together with others others and I quote operated an international sex trafficking and prostitution business. So 2008 to 15 that fits with our timeline. Yeah I mean that that pretty much is our timeline. I mean the earliest event we found evidence for was back in 2009. But do you remember in episode six, we spoke to somebody who said that he'd been working for Mike Jeffries doing these sex events for him since 2005. So it reminds me of what we heard in the press conference. Prosecutors say they're still investigating. So anyone with information, they're encouraging to come forward. So what's the first bit? It says they used

Jeffrey's Power as the CEO of Abercrombie and a network of employees, contractors and security professionals to run a business that was dedicated to fulfilling their sexual desires and ensuring that their international sex trafficking and prostitution business was kept secret, thereby maintaining Jeffrey's powerful reputation. What's this bit here, Ruth? So it says they paid for dozens of men to travel within the United States and internationally to meet Jeffreys and Smith.

of men to travel within the United States and internationally to meet Jeffries and Smith. It's just so strange seeing everything we've been investigating in black and white on an indictment. Yeah, it's huge. It says they used an exclusive set of household staff to facilitate and supervise the sex events. Well, that's the housemen we've been told about. He was in charge of transporting the men, directed them, and acted as security, controlling entry and exit. But then there's a section on James Jacobson. I mean, the indictment says he would recruit and interview men in tryouts,

and then Matthew Smith would approve candidates. I mean we also found that. Yeah this all sounds very familiar but it's worth saying that the FBI gathered this information completely separately but it corroborates everything that we'd uncovered. Yeah absolutely. I mean they didn't contact us asking us to hand over material and we wouldn't just hand material over because, you know, we protect our sources. Absolutely. So what else is there? What else is there? Oh, this is a key section. Because so many of the men we spoke to said it wasn't clear what they were getting into.

It says here, getting into. It says here, Jeffries, Smith and Jacobson and others acting at their direction employed coercive, fraudulent and deceptive tactics and failed to inform men of the details of the sexual activity that would be required of them. But also there's more. It says they caused men to believe that attending the events could yield modelling opportunities with Abercrombie Also, there's more. It says, That's exactly what Barrett, David and others have told us. And this bit is significant. Itineraries did not refer to commercial sex and instead resembled those often sent to models for photo shoots, thereby obscuring the nature of the sex events.

And then there's more detail about what happened at these events. It says right here, men were physically groomed, required to relinquish their personal items, such as wallets and cell phones. We were told that happened in Marrakesh. Exactly, and it says men were required to sign non-disclosure agreements. I mean, we already know this. Now, I got the sense, reading that indictment,

and I've been hearing this a bit myself from some sources, that I think the FBI has found the NDAs. Wow, that would be a game-changer. What, in a filing cabinet somewhere? Huge. Wow, that would be a game changer. What, in a filing cabinet somewhere? Huge. Wow. And then the attorney also released a memo with some more detail on the allegations. It says many of the victims, at least one of whom was as young as 19 years old, were financially vulnerable and that Jeffries and Smith engaged in sex acts or caused men to engage in sex acts to which the men did not or were unable to consent and it mentions that

both Mike Jeffries and Matthew Smith engaged in aggressive sexual behaviour. This is new. It says on occasions when witnesses threatened to expose or sue them, Jefferson Smith relied on the services of a security company to surveil and intimidate those individuals, thereby securing their silence. I mean, it makes me think about the number of people we approached who were too scared to speak. You know, maybe they had good reason. Well, yeah, and I haven't really talked about this before, but, you know, I got all of those hacking attempts. I mean, they were all unsuccessful, but that was stressy. And we kind of thought afterwards maybe we were just being paranoid. I know, though, it was just in my head.

I mean, I still don't know, but reading that, I mean, you're right. Maybe the men did have good reason to be concerned. Oh, it also. So the memo also sets out this argument that the defendants pose a significant risk of flight and a danger to the community. That's the header. And because of this, the prosecutor has requested some pretty high bonds. Half a million dollars for Jim Jacobson. Oh, and 10 million for Mike Jeffries. Yeah, and they were actually released on bail on Tuesday. But Matthew Smith, because he's a British citizen,

the fear is that he could fly back to the UK. So they want him to be detained in jail until a trial takes place. Of course, all of this might change. I mean, it depends on what happens in court this afternoon. Exactly. How do you think it's going to go later? I really don't know, but a part of me is a little bit nervous about seeing Jeffries for the first time,

but also seeing Jim again. You know, the last time we saw him was in August 2023 when we knocked on his door and he asked for a deal. I haven't seen him since. I haven't heard from him since. It's a big day. Do you know what will actually happen? All I know is that they're going to be in court,

a judge is going to read out the charges against them and they're going to enter their pleas. Do you have any hunch of which way it would go? My hunch is that nobody's going to plead guilty, not least because, from what I understand, they could be facing a minimum 15-year sentence if found guilty, or even life imprisonment. I mean, but who knows?

There's only one way to find out. We'd better get to court. Let's get going. Oh, look, there's a big sign saying courts. Great. We're on the right track. So we're driving east along Long Island, heading to the federal court where Mike Jeffries is due to appear.

Just turning up now, just heading left. Oh, I see all the... Oh, gosh, look at all the media. All the cameras are up. Oh, can you see the BBC crew? Yeah, I do. Yeah, I see all the, oh gosh, I look at all the media, all the cameras are up. Oh, can you see the BBC crew? Yeah, I do. Yeah, I see them. Okay, do you want to jump out while I park? Yeah. Okay, I'll see you out there. Thanks. Do you want me to carry that? Or can I just? Yeah, yeah, that's good. I'm surrounded by camera crews and reporters outside the federal courthouse in Long Island. It's a shiny, modern, high-rise building with a white tower attached.

A bit like a lighthouse. And strangely, we're only an hour away from the Abercrombie guys' former mansion in the Hamptons, where some of the men told me they were taken. This is just so surreal. So surreal. Can I leave my recorder with you? We aren't allowed to take our recorders inside, so should we leave stuff in the car when we go in?

Yeah, yeah, let's do that. It's like two o'clock. We've got like an hour until it starts, so let's try and get a seat in the courtroom. As we headed into the courtroom, we took a quick detour into the coffee shop. There in front of me was someone I was not expecting to see. Wow, that was really weird.

That was really weird. We just bumped into Mike Jeffries in the courtroom canteen. He was sitting down with his legal team and also his son I mean I obviously walked in and I walked straight out I was like Rosie's there yeah as soon as we walked in the canteen I saw the shock of white hair and this dark suit and I thought oh my gosh that's that's him and we were walking by and I just saw him put his chin up and lick his arse over his shoulder and glare. Do you think he knew who we were?

Yeah, yeah. I mean, his lawyer looked at me in a way of like, oh, I acknowledge who you are. And he looked at me in a way that felt quite arrogant, quite haughty. And yeah, just a bit of disgust, suppose I don't know it's just so weird somebody who I have been looking into for three years who never responded to our right of reply who has never done an interview who's also just rarely been photographed um and just yeah I guess coming face to face with him like that in such an intimate setting,

just really uncomfortable. He just looks so different as well. I mean, I feel like, you know, when he was last photographed, he still had lots of fillers. And just, yeah, he's just the polar opposite of that now. His hair's gone white, fillers dissolved. He looks good for 80. I guess. He also just kind of looks quite, like, quite feeble.

I mean, I thought we'd missed him because we heard that he entered the courtroom about 11am, right? Though he's due to appear at three. So now we wait. Now we wait. I don't know. I think the person who I'm, like, most nervous about seeing is Jim. But I think that's because we sat down with him for, like, a good two hours. but I think that's because we sat down with him for like a good two hours and he was like oddly charming and charismatic and I remember him sitting there being like oh sweetheart you know let's do a deal you know leave my name out I'll tell you everything like he was just very um very patronizing but very charming yeah but quite funny you know remember when he put on all those accents

you know trying to convince us he could do an anonymous interview and then broke out into like the queen's english and then put on a southern accent and then pretended to put a cloak on um you know to somehow convince us that he could be an anonymous source um i wonder what he's going to be like today. We headed back inside, this time into the courtroom itself, and once again, there was Mike Jeffries, sitting alongside his lawyers. And about a metre away from us was his son and his wife. And just one row in front was Jim Jacobson.

There was a noticeable absence, though. Matthew Smith, who was scheduled to appear in court at a later date. The court hearing was over pretty quickly. On the way out, I tried to get a response from Mike Jeffries. Mr Jeffries, do you have any regrets? What do you say to the men who say you exploited them? Do you have any comment? But once again, he remained silent.

We've just come out of court. Mike Jeffries and Jim Jacobson entered pleas of not guilty after a judge read out the charges against them. They're both due to be back in court again in December. I mean, one of the most striking things today was seeing Jim Jacobson again. We were there sitting in court and every now and then he would look behind and look at us and then kind of look away and he sat there with his head in his hands. I don't know if he looked distraught, but he definitely looked worried. I don't know if he looked distraught, but he definitely looked worried. He looked upset to me. He was leaning his head on his hand,

and you could see his fingers gripping his forehead. He was clearly pretty distressed by the whole thing. And all I kept thinking about was, where have I seen that image before? And it was in August last year where we knocked on his door, we told him we were about to publish an investigation, and I just remember him sitting down on his porch, putting his head in his hands and cursing. As he left court, I kind of, you know, shouted some questions at him.

I could tell he was getting overwhelmed by the press attention and he kind of turned around put his back to the media and like was hiding his face his face mind you also looked really different today he hasn't got that snakeskin nose patch anymore he's got like a a really subtle prosthetic that sort of like flesh skinned and I guess blend in a bit more but for some reason, seeing him here today, I mean, he's now 71, but I always felt quite sorry for him, sort of seeing him there. But at the same time, I thought, when we put the allegations to him last year,

he didn't seem remorseful at all. I didn't get any sense that he felt bad for any of the allegations that had been made against him. I think it's totally natural to feel a kind of human sympathy for anyone, you know, who's going through, obviously, a difficult time. But, yeah, the thing that I keep running through my head is the words of all the men that we've heard and, you know, his role in what they said happened to them.

Same. And it was just really surreal seeing him again and also seeing Mike Jeffries for the very first time. At one point as he was entering the court, he kind of looked at me directly and had his chin raised. I don't know what to make of that. But, you know, he sat in the courtroom. I thought he looked like he was a bit slouched. At some points, it seemed like he

couldn't really hear what the judge was saying. He seemed quite frail. Leaving the court, the judge said that Mike Jeffries has been released on bail and he's currently under house arrest uh pending trial at some point in the future and his wife and son were there today yeah it was really interesting so jeffries got so so mike jeffries got released on a $10 million bond. And what was interesting was that it was his wife and also his son who put down the security. So basically that $10 million bond is up against his wife's house. And it was really striking seeing him with his hair now white. I mean, this was a guy who loved having highlighted hair back in the day. The guy who used to wear flip-flops and now instead he's got an ankle monitor on.

I'm thinking back over the past few years, that first phone call with Barrett and all the subsequent digging and phone calls and door knocking, trying to uncover what was going on and speaking to so many brave men who shared their experiences. And it feels like the culmination of so much. But this is actually the start of something even bigger, and it will be here to cover it. to cover it. You've been listening to World of Secrets. The Abercrombie Guys is presented and investigated by me, Rhianna Croxford. You can reach me at rhianna.croxford at bbc.co.uk.

The series producer is Ruth Evans. The BBC News investigations editor is Ed Campbell BBC News Investigations editor is Ed Campbell. And the podcast editor is Richard Fenton-Smith. This podcast is made in collaboration with BBC Panorama. If you're in the UK, you can watch Panorama and the Abercrombie Guys' The Dark Side of Cool on BBC iPlayer now. Across Europe, you can now view it on BBC Nordic Plus. And it will be available in

Germany later this year. The World of Secrets theme music is by Jeremy Wormsley. The Abercrombie Guys is a BBC News long-form audio production for BBC Sounds. The commissioners at BBC Sounds are Dylan Haskins and Louise Catton-Horn. For just as long as Hollywood has been Tinseltown, there have been suspicions about what lurks behind the glitz and glamour. Concerns about radical propaganda in the motion pictures. And for a while, those suspicions grew into something much bigger and much darker. Are you a member of the Communist Party? Or have you ever been a member of the Communist Party?

I'm Una Chaplin, and this is Hollywood Exiles. It's about a battle for the political soul of America, and the battlefield was Hollywood. All episodes of Hollywood Exiles, from the BBC World Service and CBC are available now. Search for Hollywood Exiles wherever you get your podcasts.