Abuse scandal in the business world: Payments to former CEO stopped
American clothing company Abercrombie & Fitch has stopped paying a lifetime bonus to former CEO Mike Jeffries following sex trafficking allegations.
American clothing company Abercrombie & Fitch has suspended payments to its former CEO following sex trafficking allegations.
Abercrombie & Fitch to give former CEO Mike Jeffries nearly $1 million a year on top of standard retirement pay following sex trafficking allegations dollar announced that it has stopped providing lifetime bonus payments of .
In October, allegations emerged of the exploitation of young men recruited for sex activities while Jeffries was boss. The BBC spoke to eight men who attended these events, which took place in London, New York and Marrakech, among other cities, and some claimed they were exploited or abused.
In a subsequent lawsuit, Jeffries was accused of financing a sex trafficking operation.
The brand told the BBC it had suspended extra pension payments to Mr Jeffries.
WHAT HAPPENED?
The BBC claimed that Mike Jeffries, former CEO of the American clothing company Abercrombie & Fitch, and his British partner Matthew Smith, exploited men for money at private sex parties they organized in different cities around the world.
In the weeks that followed, Abercrombie & Fitch (A&F) was accused in a civil lawsuit of financing a “criminal enterprise” led by Mike Jeffries and Mr. Smith between 1992 and 2014.
Court documents allege that more than 100 men may have been sexually abused during Jeffries’ time as CEO, and that young boys were manipulated under the guise of becoming Abercrombie models.
It is also alleged that corporate money and resources were used to facilitate a “sex trafficking enterprise.”
