The former CEO of fashion giant Abercrombie & Fitch (A&F) and his British partner have been arrested and are facing sex trafficking charges.
Mike Jeffries, his partner Matthew Smith and the couple’s alleged middleman were arrested on Tuesday morning.
The FBI and prosecutor’s office have given a press conference explaining the details of the charges.
Lawyers for Mr Jeffries and Mr Smith have both previously denied any wrongdoing by both men. Responding to the latest news, Mr Jeffries’ lawyer told the BBC: "We will respond in detail to the allegations after the Indictment is unsealed, and when appropriate, but plan to do so in the courthouse – not the media."
A lawyer for Mr Smith has been approached for new comment. A&F declined to comment on the latest developments.
The FBI opened an investigation last year after the BBC revealed claims that Mike Jeffries and his partner sexually exploited and abused men at events they hosted in their New York residences and hotels around the world.
A BBC investigation found there was a sophisticated operation involving a middleman and network of recruiters tasked with recruiting men for the events.
Following the BBC’s reporting, a civil lawsuit was filed in New York accusing Mr Jeffries and Mr Smith of sex-trafficking, rape and sexual assault.
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