Former Abercrombie CEO Michael Jeffries arrested in sex-trafficking case, WSJ reports

(Reuters) - Michael Jeffries, former CEO of Abercrombie & Fitch, was arrested by federal agents investigating allegations that he ran a sex-trafficking operation, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

He was arrested on Tuesday in Florida as part of an investigation being led by federal prosecutors in Brooklyn, New York, the report said.

Abercrombie & Fitch declined to comment to Reuters queries, while Jeffries was not immediately reachable.

Last year, a group of once-aspiring Abercrombie & Fitch male models sued the retailer and the former CEO alleging that the company had benefited from a sex-trafficking operation led by Jeffries.

The proposed class action filed by former model David Bradberry in Manhattan federal court claims Jeffries forced models to take drugs and engage in sexual acts with him and others for the chance to be featured in Abercrombie's provocative catalogs.

The lawsuit had alleged that company officers knew about the conduct and Abercrombie paid settlements to people who accused Jeffries of sexual abuse or harassment.

Jeffries, who was CEO from 1992 to 2014, was credited with turning around the retailer into a successful teen apparel maker known for its cologne-filled stores and ads featuring semi-nude models. He, however, resigned amid criticism that he had failed to keep pace with the tastes of teen shoppers.

Source: Investing.com