Mike Jeffries, former CEO of Abercrombie & Fitch, will plead not guilty to sex crimes charges.

• Mike Jeffries and James Jacobson, the former CEO and associate of Abercrombie & Fitch, will plead not guilty to federal criminal sex trafficking and interstate prostitution charges, their lawyers announced to CNBC.
• Jeffries and his romantic partner Matthew Smith are accused of running an international sex trafficking operation with the assistance of Jacobson, as stated in a federal indictment.
• Over six years, the alleged illegal conduct occurred, which coincided with Jeffries' time as CEO of the clothing brand.

On Friday, former CEO Mike Jeffries and his associate will enter a plea of not guilty to federal criminal charges of sexually exploiting numerous men, many of whom aspired to become models for the clothing brand.

In three days, Jeffries, 80, and James Jacobson, 71, will be arraigned in U.S. District Court in Long Island, New York, for sex trafficking and interstate prostitution charges.

Earlier Friday, attorneys for both men confirmed to CNBC that their clients would enter not-guilty pleas.

An indictment with 16 counts was unsealed on Tuesday, accusing Jeffries and his partner Matthew Smith, 61, of running an international sex trafficking operation for over six years, which largely coincided with Jeffries' time as CEO of Abercrombie.

Jacobson was accused of being a recruiter for "Sex Events" and demanded that candidates participate in "tryouts" with him.

The indictment claims that the defendants employed "coercive, fraudulent, and deceptive" recruitment methods, such as leading men into believing that attending Sex Events would result in modeling opportunities with Abercrombie or benefit their careers.

If convicted, Jeffries and Jacobson could face a maximum sentence of life in prison on the sex trafficking charge alone, and a mandatory minimum of 15 years behind bars. They could also receive as much as 20 years behind bars if convicted on all 15 counts of interstate prostitution.

Both Smith and Jeffries were arrested in Florida, while Jacobson was arrested in Wisconsin, where he resides.

At his initial court appearance in West Palm Beach on Tuesday afternoon, Jeffries was released on a $10 million bond, along with home confinement and location monitoring conditions, by a federal magistrate judge.

Smith was held in custody due to his U.K. citizenship, which poses a higher flight risk.

On Tuesday afternoon, Jacobson was released on a $500,000 bond after appearing in federal court in St. Paul, Minnesota.

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