After appearing in court on Tuesday, Mr Jeffries was released on $10 million (£7.7 million) bail, while Mr Jacobson was released on $500,000 bail. He is scheduled to appear in court next Friday.
Mr. Smith was ordered detained.
U.S. Attorney Peace confirmed at a news conference Tuesday that authorities initially received a tip through media reports.
Following the BBC’s report, a civil suit was filed in New York charging Mr. Jeffrey and Ms. Smith with prostitution, rape, and sexual assault.
The lawsuit also accuses Abercrombie & Fitch of funding a sex trafficking operation that its former CEO ran for 20 years.
On Tuesday morning, civil barrister Brad Edwards of Edwards Henderson, who is representing some of the victims, said: “This arrest is an important step towards bringing justice for the many victims who have been exploited and abused through sex trafficking schemes. It’s a huge first step for many years under the legal protection provided by Abercrombie.
“Unprecedented reporting by the BBC and a lawsuit brought by our company to detail the operation are credited with making these landmark arrests – the result of impressive investigative journalism.”
In its initial investigation, the BBC interviewed 12 men who attended or organized sex-related events for Mr Geoffrey, 80, and his British partner Smith, 61, between 2009 and 2015.
Eight men who attended the event said they had been recruited by a middleman identified by the BBC as James Jacobson.
Then, last month, more men came forward. Some claimed Mr Jeffries’ assistant injected it into his penis after being told it was liquid Viagra.
Jacobson, 71, told the BBC through his lawyer: “I am offended by the suggestion that I have behaved in a coercive, deceptive or coercive manner. I am not aware of any such conduct by anyone else.”
The BBC also interviewed dozens of other sources, including former domestic staff.
Some of the men interviewed by the BBC said they had been misunderstood about the nature of the incident or had not been told that sexual relations were involved. Others said they understood the incident was sexual, but it wasn’t exactly what they expected. Everything has been paid.
Several told the BBC that intermediaries or other recruiters had raised the possibility of modeling opportunities at A&F.
David Bradberry, then 23 and an aspiring model, said it “became clear” that he could not meet A&F CEO Jeffries unless he performed oral sex on Jacobson.
Mr Bradbury told the BBC: “It was as if he was selling his reputation – the price was compliance.”
Mr. Bradbury said he later attended a party at Mr. Jeffries’ mansion in Hampton, Long Island, where he met Mr. Jeffries and had sex.
He said the “secluded” location of Mr Jeffries’ personal staff, who oversee the event in A&F uniforms, meant he “did not feel safe saying ‘no’ or ‘I am not comfortable with this'”.
After the BBC’s initial investigation was published last year, A&F announced it would launch an independent investigation into the allegations. When we recently asked when the report would be completed and whether the findings would be made public, the company declined to comment.
Like Jeffries and Smith, the brand has been trying to have the civil suit dismissed, claiming it had no knowledge of the “alleged prostitution ventures” led by its former CEO.
Earlier this year, a U.S. court ruled that A&F must cover the legal defense costs of Mike Jeffries as he continues to fight civil charges of sex trafficking and rape. A judge ruled the charges were related to his corporate role after he sued the brand for refusing to pay his legal fees.
The brand said it did not comment on legal issues. But A&F said in its submission to the court that its current management was ‘previously unaware’ of the allegations until contacted by the BBC, and that the company ‘abhors the sexual abuse and condemns the alleged conduct’ by Mr Jeffries and others. added.
Jeffries stepped down as CEO in 2014 due to declining sales and left with a severance package worth about $25 million (£20.5 million), according to company filings at the time.
Once one of the highest-paid CEOs in the country, he has faced controversy amid claims of discrimination against employees, concerns about excessive costs and complaints about the unofficial influence of his life partner, Matthew Smith, within A&F. He was a person with .
