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The former CEO of fashion giant Abercrombie & Fitch and his British partner have been arrested and are facing sex trafficking charges, the BBC understands.
Mike Jeffries, his partner Matthew Smith and the couple’s alleged middle-man were arrested on Tuesday morning.
The FBI and prosecutor's office are expected to announce more details at a press conference shortly.
Lawyers for Mr Jeffries and Mr Smith have been approached for comment. They have previously "vehemently denied" any wrongdoing by both men.
The FBI opened an investigation last year after the BBC revealed claims that Mike Jeffries and his partner sexually exploited and abused men at events they hosted in their New York residences and hotels around the world.
A BBC investigation found there was sophisticated operation involving a middleman and network of recruiters tasked with recruiting men for the events.
Confirming the arrest, Brad Edwards of firm Edwards Henderson, a civil lawyer representing some of the alleged victims, said: "These arrests are a huge first step towards obtaining justice 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 credit for these monumental arrests. This was the result of impressive investigative journalism."