Besides Jeffries, his partner and a third person were arrested within the framework of the FBI-led investigation.
Federal prosecutor Breon Peace said at a press conference that the three are accused of sex trafficking and being involved in pimping in several states.
Jeffries and his partner have also previously been suspected of exploiting and assaulting young men at parties they organized in the USA and elsewhere in the world. It was already revealed last year that the couple was being investigated for sexual offenses against young men between 2009 and 2015.
"This is about an Abercrombie-driven organization for sex trafficking that permeated the company and made it possible for the three individuals arrested today to assault numerous young aspiring male models", says a prosecutor's assistant to ABC.
In January, BBC reported that Mike Jeffries was accused of exploiting over 100 men during his time as CEO of the company, and last autumn, several people came forward with testimonies about abuse and sexual exploitation.
Jeffries was CEO of Abercrombie & Fitch between 1992 and 2014 and has been praised for lifting the company during his tenure. Both he and his partner deny the allegations.
The clothing company Abercrombie & Fitch is also investigating its former CEO.