Years of controversy preceded the arrest of the ex-CEO of Abercrombie & Fitch

• Former Abercrombie & Fitch CEO Mike Jeffries was charged pinch activity trafficking connected Tuesday.
• The national indictment follows a history of contention for Jeffries.
• Under his leadership, Abercrombie became a marque deed pinch a number of lawsuits.

Long earlier national charges hit, location were concerns astir erstwhile Abercrombie & Fitch CEO Mike Jeffries — and lawsuits that attacked nan measurement he ran his company.

Then, connected Tuesday, he was charged pinch activity trafficking and interstate prostitution.

This week's indictment alleges that Jeffries, his partner Matthew Smith, and a 3rd man utilized nan powerfulness of Abercrombie's marque to coerce dozens of men, galore of whom hoped to go models for nan brand, into "sex events." Prosecutors opportunity nan alleged sex-trafficking cognition spanned from astir 2008 to 2015; Jeffries was CEO from 1992 to 2014.

Attorneys for Jeffries and Smith told Business Insider successful statements that they would respond "in nan courthouse." Abercrombie & Fitch said it was "appalled and disgusted" by nan allegations against its erstwhile CEO.

Jeffries, who is reportedly now 80 years old, was hired by Les Wexner — nan erstwhile CEO of Victoria's Secret and Jeffrey Epstein associate — to lead Abercrombie. (removed day present arsenic it's above)

He trim his teeth astatine section stores, yet landing astatine Paul Harris, a now-defunct women's concatenation successful nan Midwest, wherever he worked successful merchandising until it revenge for bankruptcy.

Under Jeffries' leadership, Abercrombie became nan type pinch which teens of nan 1990s and early 2000s were good acquainted. He traded successful its hunting and sportfishing garb and stuffy branding for low-rise jeans, logos everywhere, and tight vessel tops. With its signature musky scent exuding from its stores, thumping creation music, and shirtless models who welcomed customers inside, nan caller Abercrombie oozed sex.

Sex and intersexual attraction were "almost everything," he told Salon successful a uncommon 2006 interview. "That's why we prosecute good-looking group successful our stores. Because good-looking group pull different good-looking people, and we want to marketplace to cool, good-looking people. We don't marketplace to anyone different than that."

He was known arsenic a perfectionist, paying attraction to everything from really items were stacked to nan layout of stores.

"This is very overmuch a subject operation," Jeffries told The Wall Street Journal successful 1997. "It is very disciplined and very controlled."

That was particularly existent erstwhile it came to who nan institution hired. At nan time, Abercrombie was known for its white, buff antheral staff, who were often shirtless. The institution scouted assemblage campuses to find nan astir charismatic students to activity arsenic in-store income associates. Models were changeable by Bruce Weber, a photographer known for his images of naked men. Weber has since been accused of intersexual battle by aggregate antheral models; he has denied immoderate wrongdoing and settled a number of nan lawsuits.

Weber did not respond to a petition for remark from BI.

The caller look was popular, and Jeffries was capable to raise prices without losing customers.

Sales skyrocketed, caller stores opened, and nan institution went nationalist successful 1996. Revenue went from $353 cardinal for nan 12 months ending successful 1997 to a highest of $4.5 cardinal for nan 12 months ending successful February 2013.

Jeffries, too, was rewarded financially. At nan peak, he earned 8 figures a year. He was called 1 of nan 5 astir overpaid CEOs by CNN successful 2008 aft earning $72 million. That compensation gave him a lavish lifestyle.

According to nan national indictment, Jeffries and Smith paid men to meet them astatine Jeffries' homes successful nan Hamptons and New York City, arsenic good arsenic astatine hotels successful costly destinations for illustration St. Barts and connected a luxury cruise ship.

"Jeffries and Smith spent millions of dollars to create a monolithic infrastructure that supported this operation," nan indictment says, adding that they paid hundreds of thousands of dollars for commercialized activity and "prolific amounts" connected unit to "run Sex Events, home and world recreation and edifice rooms," security, and more.

Jeffries was nary alien to controversy

While nan money was flowing, Jeffries' guidance style and judgement calls besides raised eyebrows.

There were protests astir t-shirts that publication "Gentlemen Prefer Tig Ol' Bitties." Thongs for tween girls that were branded pinch nan words "eye candy" and "wink wink" caused a backlash.

"I still deliberation those are tiny underwear for small girls. And I deliberation anybody who gets connected a bandwagon astir thongs for small girls is crazy. Just crazy!" he told Salon.

Employees had to travel a handbook that elaborate what they should deterioration down to their underwear. Dreadlocks and golden chains weren't allowed.

By nan early 2000s, nan lawsuits started.

First, a group of erstwhile and prospective labor sued nan institution successful 2003, alleging that it fired aliases refused to prosecute them based connected their race. While Jeffries was not mentioned by sanction successful nan complaint, it lays retired really overmuch power nan company's firm agency had complete individual stores and their employees, visiting successful what were known arsenic "blitzes" to guarantee that shop managers had nan "A&F look."

The adjacent year, nan institution settled, agreeing to salary much than $40 cardinal and prosecute a main diverseness officer, though it did not admit immoderate wrongdoing.

A akin lawsuit, though, went each nan measurement to nan Supreme Court. In 2008, an Abercrombie shop declined to prosecute an Oklahoma teen because she wore a achromatic headscarf, which it said violated institution policy. The teen based on that was belief discrimination, and nan court agreed, ruling 8-1 against Abercrombie.

A 2010 suit from a erstwhile aviator connected Jeffries' executive pitchy alleges that Jeffries and Smith were arsenic exacting retired of nan office. The aviator accused nan CEO of enacting akin standards connected committee arsenic successful Abercrombie stores and firing him owed to his age. Jeffries and Smith regularly made disparaging remarks astir older people, and Smith, Jeffries' partner, was fixed nan authority to prosecute and cull imaginable pilots based connected "form" and "fit," according to nan complaint.

An extended hose manual is included successful nan case's evidence. The handbook listed Smith's six-step beverage work — Fortnum and Nason Assam aliases Darjeeling, depending connected nan clip of day, arsenic good arsenic nan crew's azygous down to their underwear — boxer briefs — and nan popped collar of their wintertime coats. Jeffries' dogs had their ain seating arrangement.

The institution settled without admitting fault.

Other lawsuits alleged Jeffries' compensation was excessive and that he misled shareholders astir nan company's profits. Both were settled.

By nan clip Jeffries stepped down successful 2014, nan marque had mislaid its luster, and nan contention was nary longer resulting successful growth.

"The logo is nary longer cool unless you are a mediate schooler successful a agrarian mediate school," Erik Gordon, an adjunct professor astatine nan University of Michigan's business school, told BI astatine nan time.

But Jeffries still ended up connected apical — for a small while. In summation to a status package reported to beryllium astir $25 million, he received yearly payments of $1 million, which came to an extremity past year, nan institution told nan BBC, aft nan outlet published an investigation into really Jeffries and Smith allegedly exploited young men for sex.

Those payments — and his net from his CEO days — apt helped him spend nan $10 cardinal enslaved he put up to get retired of jailhouse this week. Though Breon Peace, nan US lawyer for nan Eastern District of New York, said Jeffries shouldn't get utilized to it.

"Prepare to waste and acquisition that sofa for a furniture successful national prison," he said.

Have you worked for aliases been affected by Mike Jeffries aliases Abercrombie? Please scope retired to nan newsman astatine mberg@businessinsider.com