Former Abercrombie & Fitch CEO Mike Jeffries has pleaded not guilty to sex trafficking and interstate prostitution charges.
The 80-year-old appeared at federal court in Central Islip, on Long Island, New York, to enter his plea.
He is due back in court on 12 December and is free on a $10m (£7.7m) bond.
It is alleged that for years Jeffries, his romantic partner Matthew Smith, and a third man, James Jacobson, lured men into taking part in sex parties by promising modelling for the clothing retailer.
Jacobson, 71, an employee of Jeffries, planned to plead not guilty, his lawyer said before today’s hearing.
James Jacobson. Pic: Reuters
Smith also appeared in court and was detained after prosecutors raised concerns the dual American and British citizen might flee the country.
In charges announced earlier this week, prosecutors say 15 accusers were induced by “force, fraud and coercion” to engage in drug-fuelled sex parties in which the men were sometimes directed to wear costumes, consume alcohol and muscle relaxants, use sex toys and endure painful erection-inducing penile injections.
They were also required to sign non-disclosure agreements, the indictment said.
The events took place between 2008 and 2015 in the Hamptons, the resort on Long Island where Jeffries has a home, as well as at hotels in England, France, Italy, Morocco and St Barts, according to the indictment.
Prosecutors say Jacobson acted as a recruiter, paid men to have sex with him then chose who would be paid to travel to countries around the world to have sex with Jeffries and Smith.
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While victims were led to believe that their efforts could lead to modelling jobs, the scheme’s true purpose was to fulfil Jeffries’ and Smith’s sexual desires without tarnishing Jeffries’ reputation, they said.
Each defendant faces 15 years to life in prison if convicted of sex trafficking, and up to 20 years in prison if convicted of interstate prostitution.
The charges echo accusations in a 2023 BBC investigation and private litigation on behalf of Jeffries’ accusers.
Abercrombie has also been sued, but has denied knowledge of Jeffries’ alleged misconduct. The New Albany, Ohio-based company was not charged in the criminal case.
Jeffries built Abercrombie into a popular clothing brand focused on teen shoppers, using splashy, sexually charged marketing that included adverts with semi-nude models.
He resigned amid falling sales and criticism he was losing his touch with customers’ changing tastes.
In an online post, Abercrombie said it was “appalled and disgusted” by the accusations against Jeffries, and that it has since his departure “transformed our brands and culture into the values-driven organisation we are today.”