Former Abercrombie & Fitch CEO’s Partner Enters Not Guilty Plea to Sex Trafficking Allegations

The British associate of Mike Jeffries, who previously served as CEO of Abercrombie & Fitch, has entered a not guilty plea regarding accusations of sex trafficking and interstate prostitution. Matthew Smith, dressed in a tan oversized shirt and black-rimmed glasses, remained silent in a New York federal courtroom on Long Island while his legal representatives submitted his plea. The individual, aged 61, was granted release under house arrest, contingent on a $10 million (£7.7 million) bond. Mr. Smith, Mr. Jeffries, 80, and James Jacobson, 71, identified as their alleged intermediary, were apprehended in October and accused of operating a global sex trafficking and prostitution enterprise. Both Mr. Jeffries and Mr. Jacobson have similarly entered not guilty pleas. Federal prosecutors have leveled accusations against the three individuals, asserting they employed force, deception, and compulsion to compel a minimum of 15 young men to participate in “violent” and exploitative sexual activities from 2008 to 2015. Prosecutors have claimed that the scheme “encompassed dozens and dozens of men,” with the youngest victim being 19 years old when the alleged offense occurred. Furthermore, they have stated that some of these individuals had prior employment at Abercrombie & Fitch (A&F) outlets or served as models for the company. Authorities initially classified Mr. Smith, a citizen of the UK, as a flight risk, leading to his detention until his trial. On Tuesday, during a hearing lasting 30 minutes, New York Judge Lee Dunst informed Mr. Smith that he would be confined to house arrest at his residence in Palm Beach, Florida, and was required to relinquish his passport. His permitted departures from home were restricted to medical appointments for himself and Mr. Jeffries, consultations with his legal counsel, and attendance at religious services. Mr. Smith seemed composed as he posted a $10 million (£7.7 million) bond, utilizing two Florida homes and a Fire Island property as security. Six individuals consented to act as guarantors for the bond: Mike Jeffries and his spouse Susan Jeffries, their son Andrew and daughter-in-law Annabel Jeffries, Diane Chang, a former A&F executive vice-president, and Patrick Wiesel. Abercrombie & Fitch has been contacted for a statement. Mr. Smith received directives to refrain from any contact with alleged victims or witnesses and to avoid communicating with Mr. Jacobson, who is facing identical charges. His interactions with Mr. Jeffries concerning the case are to occur exclusively via legal representation. Upon Mr. Smith’s departure from the courtroom, Brian Bieber, Mr. Jeffries’ attorney, presented him with a shopping bag adorned with suggestive torso silhouettes. Mr. Smith declined to answer inquiries from journalists as he departed the courthouse, outfitted with an ankle monitor and white trousers, before entering a black SUV. The FBI initiated its inquiry subsequent to a BBC podcast and documentary that brought to light accusations of sexual exploitation by Mike Jeffries during his tenure as CEO. The BBC uncovered that Mr. Jeffries and Mr. Smith were central to an elaborate scheme that utilized an intermediary to enlist men for sexual gatherings they organized in prominent global cities, such as London, Paris, and Marrakesh. Mr. Jeffries resigned from his roles as CEO and Chairman of A&F in 2014, following two decades at the helm, departing with a retirement package valued at $25 million. Subsequent to the BBC’s coverage, A&F launched an independent investigation and halted annual retirement payments of $1 million to him. In addition to the criminal proceedings, A&F, Matthew Smith, and Mr. Jeffries are also contesting a civil lawsuit that alleges the company financed a sex trafficking enterprise managed by the two. On Monday, Mr. Jeffries initiated legal action against the retailer subsequent to its refusal to cover his criminal defense expenses, asserting that the brand had committed to indemnify him for all claims stemming from his role within the company. Previously this year, a U.S. court determined that A&F was obligated to bear his legal expenditures for the civil case, concluding that the accusations were connected to his corporate responsibilities. Do you possess information pertinent to this narrative that you would like to disclose? Matthew Smith, who is infrequently photographed, encountered Mike Jeffries in 1989, and the two have maintained a relationship since the 1990s, as indicated by court records and former employees. He was raised in Hampshire, England, and pursued his education at Newcastle University prior to relocating to the U.S. to undertake an MBA program at Wharton Business School in Pennsylvania. Soon thereafter, he established two hair salons in the Midwest, both bearing his name as The Matthew Smith Clinic. Previous salon employees informed the BBC that their employment mandated taking IQ tests and wearing A&F uniforms. Subsequently, he assumed leadership of Mike Jeffries’ private family office, overseeing his numerous properties and substantial multi-million-dollar wealth. Former personnel characterized him as discreet and stated he managed all aspects of Mr. Jeffries’ existence. Concurrently, Abercrombie & Fitch executives expressed apprehension regarding the informal sway he exerted within the corporation, despite not holding an official, accountable position. Mr. Smith possessed access to confidential proprietary and financial documentation, participated in certain board meetings, consistently traveled with Mr. Jeffries on the corporate aircraft, and even chose real estate for international store sites, as per a legal complaint subsequently lodged by shareholders. View: Panorama: The Dark Side of Cool Hear: World of Secrets: The Abercrombie Guys (or access here if located outside the UK) Update, December 4th: This piece initially identified “former A&F executive vice-president Diane Chang and her husband” as among the guarantors for Mr. Smith’s bond; it has since been revised to omit the mention of her husband and to include the name of another person, Patrick Wiesel, following the judge’s misreading of the information in court. The article also separately stated that Mr. Smith is under house arrest and permitted to leave his residence solely for medical appointments with Mr. Jeffries; this has been clarified to specify that these terms also encompass medical appointments for himself, consultations with his legal representatives, and religious observances. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the material found on external websites. Learn about our policy on external links.