Abercrombie ex-CEO Mike Jeffries to plead not guilty in sex crimes case

Former Abercrombie & Fitch CEO Mike Jeffries and his associate will plead not guilty Friday to federal criminal charges of sexually exploiting dozens of men, many of whom sought to be models for the clothing brand.

Jeffries, 80, and James Jacobson, 71, are set to be arraigned in U.S. District Court in Long Island, New York, three days after being arrested on sex trafficking and interstate prostitution charges.

Attorneys for both men confirmed to CNBC earlier Friday that their clients would enter not-guilty pleas.

The graphic 16-count indictment unsealed Tuesday accuses Jeffries and his romantic partner Matthew Smith, 61, of operating an international sex trafficking enterprise over more than six years — most of which overlapped with Jeffries' tenure as CEO.

Jacobson allegedly worked as a recruiter for the "Sex Events," and would allegedly require prospective candidates to participate in "tryouts" with him.

The defendants allegedly used "coercive, fraudulent and deceptive" recruiting tactics, including by leading men "to believe that attending the Sex Events could yield modeling opportunities with Abercrombie or otherwise benefit their careers," the indictment says.

If convicted, Jeffries and Jacobson face a maximum sentence of life in prison on the sex trafficking charge alone, and a mandatory minimum of 15 years behind bars. They could also receive as much as 20 years behind bars if convicted on all 15 counts of interstate prostitution.

Smith was also arrested Tuesday and faces the same charges. He and Jeffries were both arrested in Florida, while Jacobson was arrested in Wisconsin, where he lives.

A federal magistrate judge released Jeffries on a $10 million bond, plus home confinement and location monitoring conditions, at his initial court appearance in West Palm Beach on Tuesday afternoon.

Smith was ordered to be held in custody pending his arraignment at a later date because, as a citizen of the United Kingdom, he poses a greater flight risk.

Jacobson was released on a $500,000 bond after appearing in federal court in St. Paul, Minnesota, on Tuesday afternoon.

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