Matthew Smith, romantic partner of ex-Abercrombie & Fitch CEO Michael Jeffries, released on bail in alleged sex trafficking case

The romantic partner of former Abercrombie & Fitch CEO Michael Jeffries was released to house arrest on a $10 million bond at his first Long Island court appearance Tuesday on federal charges that he ran an international prostitution and sex trafficking business, including in the Hamptons and New York City, that authorities said manipulated young men into having sex with the defendants through false promises of success in the modeling industry.

Matthew C. Smith, a British citizen who has been held in jail without bond since his Oct. 22 arrest after prosecutors said he was a flight risk, pleaded not guilty Tuesday to one count of sex trafficking and 15 counts of engaging in interstate prostitution.

Smith, 61, of West Palm Beach, Florida, is in a "romantic" relationship with Jeffries, prosecutors have said.

Jeffries, 80, also of West Palm Beach, was released on a $10 million bond in October that was secured by a home on Castle Road on Fishers Island — part of the Town of Southold — that is owned by Jeffries and his wife, Annabel.

Jeffries, who ran the clothing company from 1992 to 2014, was arrested in October in Florida with Smith. Jeffries has also pleaded not guilty to the same charges.

Co-defendant James Jacobson, 71, of Rice Lake, Wisconsin, who allegedly acted as a "recruiter" to find men to engage in sex acts with Jeffries and Smith, also pleaded not guilty in October and was released on a $500,000 bond, which is secured by his Wisconsin home.

Smith was ordered detained at his initial court appearance in Florida. He’s most recently been held at the Metropolitan Detention Center in Brooklyn.

Prosecutors had called Smith a flight risk, but reversed course and agreed to a bail package. Assistant U.S. Attorney Megan Farrell did not explain the reason for the government’s change of heart during Smith’s initial appearance in a Central Islip courtroom Tuesday.

Smith was released to home detention Tuesday afternoon wearing a monitor affixed to his left ankle.

Smith's bond was secured by six suretors including Jeffries, Smith's wife Susan, and grown son Andrew and his wife, as well as three properties — one in the Village of Saltaire on Fire Island and two others in Palm Beach, said U.S. Magistrate Judge Lee Dunst. The other suretors are Patrick Weisel and Diane Chang, who a source said is a former Abercrombie & Fitch executive.

Smith's attorney, Joseph Nascimento, of Miami, described his client as the "life partner" of Jeffries.

Neither prosecutors nor defense attorneys for both defendants have explained the intertwined relationships of Jeffries, who is married but also in a romantic relationship with Smith.

Nascimento and his co-counsel, David Raben, declined to comment after leaving court.

 Jeffries' attorney, Brian Bieber, attended Smith's initial appearance and brought into the courtroom a shopping bag embossed with the silhouettes of people who appeared to be wearing only flesh-toned undergarments. It's unclear what was in the bag, which he handed to those seated at the defense table after the hearing ended, but Nascimento was overheard earlier inquiring about his client's ability to change clothing.

Smith appeared in court in a khaki button-down shirt. He chatted with his lawyers before the proceeding began.

As part of the bond agreement, Smith has agreed to resign as a trustee for the Michael S. Jeffries Revocable Trust. He also agreed to not talk about the case with his co-defendants unless their legal counsel is present and to not contact any of the alleged victims or witnesses.

Nascimento told the judge he's already given Smith's passport to pretrial services. 

Between December 2008 and March 2015, Jeffries, Smith and Jacobson operated the international sex trafficking and prostitution business using a combination of "force, fraud and coercion" at properties in Water Mill, New York City, England, France, Italy, Morocco and St. Barts, prosecutors said, by making those they trafficked believe they might have success in the modeling world if they engaged in sex acts with the men.

Dozens of men were victims of the defendants, prosecutors have said.

Jeffries and Smith allegedly employed Jacobson as a recruiter who paid men to engage in sex as a tryout to determine if they should get to meet them, prosecutors have said. The men who were selected were then flown to various properties or hotels to have sex with Jeffries and Smith, prosecutors said. The victims were given alcohol, Viagra and muscle relaxants known as "poppers" at the sex events, prosecutors said.

Jeffries "employed a secret staff" to operate the sex events that included security personnel, prosecutors said, and the men were forced to hand over their phones and sign nondisclosure agreements to keep the alleged activity secret.

By Nicole Fuller

nicole.fuller@newsday.com@NicoleFuller

Nicole Fuller is Newsday's senior criminal justice reporter. She began working at Newsday in 2012 and previously covered local government.