Ex-Abercrombie CEO pleads not guilty

Former Abercrombie & Fitch Chief Executive Officer Mike Jeffries pleaded not guilty to running a sex-trafficking ring that coerced young men to engage in sexual acts with him in hopes of a career in modeling for the brand.

Jeffries, 80, entered his plea in federal court on Friday after his arrest Tuesday along with two other men. The three were charged with one count of sex trafficking and 15 counts of interstate prostitution.

Prosecutors for Breon Peace, the U.S. attorney for the Eastern District of New York, allege Jeffries used his wealth and power to traffic men around the world for the encounters with him and his romantic partner, Matthew Smith. They claim the third defendant, James Jacobson, procured the men for the couple through sexual “tryouts.”

“Aspiring fashion models knew that a place on one of Abercrombie’s iconic ads could be the ticket to success,” Peace said at a news conference announcing the case on Tuesday.

Abercrombie, which wasn’t charged, has said it is “disgusted” by Jeffries’ alleged conduct, that his tenure at the company ended nearly 10 years ago and that it is “fully cooperating with law enforcement.”

Jeffries and Jacobson appeared Friday in Central Islip before Magistrate Judge Steven Tiscione to be arraigned.

Boeing explores sale of space unit

Boeing Co. is exploring a sale of its space division as the troubled planemaker’s new leader looks to streamline and focus the company on its core operations, according to the Wall Street Journal.

The early-stage effort includes Boeing’s Starliner space capsule and its operations supporting the International Space Station, the newspaper said Friday, citing unidentified people familiar with the matter. Boeing is expected to continue its work on the Space Launch System, a huge rocket intended to eventually carry American astronauts back to the moon for NASA, according to the report.

Boeing Chief Executive Officer Kelly Ortberg has indicated that the beleaguered aerospace manufacturer may shrink its broad portfolio to increase the company’s focus on its core commercial aircraft and defense operations. Ortberg has begun a review of the company’s businesses that he expects to conclude by the end of the year, he said earlier this week.

“We’re better off doing less and doing it better than doing more and not doing it well,” Ortberg said on Boeing’s Oct. 23 earnings call.

Kaiser mental health strike continues

Nearly 2,400 mental health workers at Kaiser Permanente facilities remain on strike amid contract talks and allegations of a “broken” system of care, while Kaiser officials say the union has been “slow walking” the negotiation process and planned to strike before labor talks even began.

According to the union, the impacted workers include psychologists, social workers, psychiatric nurses, addiction medicine counselors, licensed clinical counselors and marriage and family therapists who “provide behavioral health care for Kaiser’s 4.8 million members in hospitals, clinics and medical offices and homecare settings from San Diego to Bakersfield.”

The union’s contract with Kaiser expired Sept. 30.

A year ago, Kaiser reached a $50 million settlement with state regulators who said the health care giant’s mental health care system lacked adequate staffing that caused lapses in access to care for patients.

From Bloomberg and City News Services reports.