The former CEO of Abercrombie & Fitch (A&F) and his associate have been arrested and charged with running a prostitution and international sex trafficking business.

Authorities arrested former fashion executive Mike Jeffries, his associate Matthew Smith and the couple’s alleged middleman – James Jacobson – on Tuesday morning.

Federal prosecutors said the men used force, fraud and coercion to engage in “violent and exploitive” sexual acts.

Mr Jeffries and his associate have previously denied any wrongdoing via their lawyers, and Mr Jeffries’ lawyer told the BBC on Tuesday that they would “respond in specific to the allegations after the Indictment is unsealed”.

A lawyer for Mr Smith has been approached for recent comment. A&F declined to comment on the latest developments.

Warning: This narrative contains descriptions of sexual acts

The FBI opened an investigation last year after the BBC revealed claims that Mike Jeffries and his associate sexually exploited and abused men at events they hosted in their recent York residences and hotels around the globe.

The BBC investigation found that there was a sophisticated operation involving a middleman and a network of recruiters tasked with finding men for these events.

On Tuesday, US attorney for the Eastern District of recent York, Breon tranquility, alleged that Mr Jeffries used his affluence, power and position as CEO of A&F “to traffic men for his own sexual pleasure” and for the pleasure of his associate, Mr Smith.

Outlining prosecutors’ accusations, Mr tranquility alleged the couple employed Mr Jacobson as their recruiter who would conduct “tryouts” with men from across the globe by engaging them in sex acts in trade for money.

Once Mr Jeffries approved of the men, they would be flown to his recent York home where they were “pressured to consume alcohol, Viagra, and muscle relaxants”, Mr tranquility claimed.

Prosecutors further alleged that Mr Jeffries and Mr Smith directed others or personally “injected men with an erection inducing substance” when they were incapable or unwilling to participate.

The ex-CEO “spent millions of dollars on a massive infrastucture to back this operation and maintain its secrecy”, prosecutors said, which included international trip, hotel stays, paid staff and safety for the events.

Prosecutors said there were 15 victims mentioned in the indictment but alleged that the operation “encompassed dozens and dozens of men”.

After a court appearance on Tuesday, Mr Jeffries was released on a $10m (£7.7m) predictable returns, while Mr Jacobson was released on a $500,000 predictable returns. They are next due in court on Friday.

Mr Smith was ordered detained.

Mr tranquility, the federal prosecutor, confirmed at a press conference on Tuesday that authorities were initially tipped off by media reports.

Following the BBC’s reporting, a civil lawsuit was also filed in recent York accusing Mr Jeffries and Mr Smith of sex-trafficking, rape and sexual assault.

The lawsuit also accused Abercrombie & Fitch of having funded a sex-trafficking operation led by its former CEO over the two decades he was in expense.

Earlier on Tuesday, Brad Edwards of Edwards Henderson, a civil lawyer representing some of the alleged victims, said: “These arrests are a huge first step towards obtaining fairness for the many victims who were exploited and abused through this sex-trafficking scheme that operated for many years under the legitimate cover Abercrombie provided.

“The unprecedented reporting of the BBC, coupled with the lawsuit our firm filed detailing the operation, are to financing for these monumental arrests. This was the outcome of impressive investigative journalism.”

In its initial investigation, the BBC spoke to 12 men who described attending or organising events involving sex acts run for Mr Jeffries, 80, and his British associate Mr Smith, 61, between 2009 and 2015.

The eight men who attended the events said they were recruited by a middleman who the BBC identified as James Jacobson.

Then, more men came forward last month. Some alleged Mr Jeffries’ assistants had injected them in the penis with what they were told was liquid Viagra.

Mr Jacobson, 71, previously told the BBC in a statement through his lawyer that he took offence at the suggestion of “any coercive, deceptive or forceful behaviour on my part” and had “no knowledge of any such conduct by others”.

The BBC also interviewed dozens of other sources, including former household staff.

Some of the men the BBC spoke to said they were misled about the nature of the events or not told sex was involved. Others said they understood the events would be sexual, but not exactly what was expected of them. All were paid.

Several told the BBC the middleman or other recruiters raised the possibility of modelling opportunities with A&F.

David Bradberry, then 23 and an aspiring model, said that it was “made obvious” to him that without performing oral sex on Mr Jacobson, he would not be conference A&F CEO Mr Jeffries.

“It was like he was selling fame. And the worth was regulatory adherence,” Mr Bradberry told the BBC.

Mr Bradberry said he later attended a event at Mr Jeffries’s mansion in the Hamptons in Long Island where he met Mr Jeffries and had sex with him.

He said the “secluded” location and presence of Mr Jeffries’ personal staff, dressed in A&F uniforms, supervising events meant he “didn’t feel secure to declare ‘no’ or ‘I don’t feel comfortable with this'”.

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After the BBC’s initial investigation was published last year, A&F announced it was opening an independent investigation into the allegations raised. When we recently asked when this update will be completed – and if the findings would be made community – the business declined to respond.

Like Mr Jeffries and Mr Smith, the brand has been trying to get the civil lawsuit against it dismissed, arguing it had no knowledge of “the supposed sex-trafficking enterprise” led by its former CEO – which it has been accused of having funded.

Earlier this year, a US court ruled that A&F must cover the expense of Mike Jeffries’ legal defence as he continues to fight the civil allegations of sex-trafficking and rape. The judge ruled the allegations were tied 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 matters. However, in its defence submitted to court, A&F said its current leadership throng was “previously unaware of” the allegations until the BBC contacted it, adding the business “abhors sexual abuse and condemns the alleged conduct” by Mr Jeffries and others.

In 2014, Mr Jeffries stepped down as CEO following declining sales and left with a retirement fund package valued at around $25m (£20.5m), according to business filings at the period.

Once one of America’s highest-paid CEOs, he was a controversial figure who faced claims of discrimination against staff, concerns about his lavish costs and complaints about the unofficial influence of his life associate, Matthew Smith, inside A&F.

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