US Attorney: 'Prepare to trade that casting couch for a bed in federal prison'

The arrest of the former CEO of fashion giant Abercrombie & Fitch should serve as a warning to other people in positions of power, a New York attorney has said.

Prosecutor Breon Peace outlined the case against Mike Jeffries, his British partner Matthew Smith, and an alleged middleman during a press conference in New York.

It's alleged Mr Jeffries and Mr Smith spent millions of dollars on the sex trafficking operation, which targeted vulnerable men.

Lawyers for the pair have previously denied any wrongdoing.

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