Michael Jeffries, former Abercrombie & Fitch CEO, pleads not guilty to charges he operated sex trafficking business in Hamptons

The former CEO of retail giant Abercrombie & Fitch was released on a $10 million bond at his first Long Island court appearance Friday on federal charges that he ran a prostitution and international sex trafficking business that federal authorities said operated in the Hamptons and New York City.

Michael Jeffries, 80, of West Palm Beach, Florida, appeared in a Central Islip courtroom Friday on an indictment charging him with one count of sex trafficking and 15 counts of engaging in interstate prostitution.

Jeffries' attorney Brian Bieber entered the not guilty plea on his client's behalf. Jeffries responded "Yes, your honor" to a few procedural questions from federal Magistrate Judge Steven Tiscione.

Jeffries' wife, Susan Jeffries, and son Andrew Jeffries appeared in court as suretors for the bond, which 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.

Susan and Andrew Jeffries declined to comment as they left court Friday.

Many of the 15 victims, listed only as "John Doe" in the indictment, "aspired to become models in the fashion industry." The defendants, according to prosecutors, "preyed on the hopes and dreams of the victims."

Jeffries, who was at the helm of the clothing retailer from 1992 to 2014, was arrested Tuesday in Florida along with his 61-year-old romantic partner, Matthew Smith, who also lives in West Palm Beach and is also charged in the indictment, authorities said.

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 before Tiscione and was released on a $500,000 bond.

Jacobson's defense attorney Jeremy Schneider entered the not guilty plea on his client's behalf.

Two family friends appeared by phone as cosigners for Jacobson's $500,000 bond, which is secured by his Wisconsin home.

Jacobson is also on home confinement and subject to electronic monitoring. He's prohibited from contacting his co-defendants, witnesses or victims in the case.

Both defendants are due back in court on Dec. 12. They left court Friday with their attorneys and declined to comment.

Smith, a British citizen who prosecutors in a bail letter described as a flight risk, was ordered detained at his initial court appearance in Florida. It's unclear when he'll go before a judge in New York.

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.

"They caused the men to believe that attending these events could yield modeling opportunities with Abercrombie or otherwise benefit their careers," U.S. Attorney Breon Peace said earlier this week.

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.