Federal prosecutors turned up the heat in a three-day competency hearing in Central Islip on Long Island on Wednesday, playing recorded prison calls of former Abercrombie & Fitch CEO Michael Jeffries that appeared to clash with his legal team's claims that the 81-year-old is too impaired to stand trial. The audio, captured during a four-month stay in a North Carolina prison mental-health unit, included Jeffries talking through defense strategies and getting emotional about the loss of his old Fifth Avenue flagship store. He remains free on a $10 million bond while awaiting trial on federal sex-trafficking and prostitution charges.
According to Business Insider, prosecutors played a recorded August 2025 phone call where Jeffries tells co-defendant Matthew Smith that “we're screwed” if he is found competent to stand trial. Other clips heard in court reportedly show Jeffries telling doctors that “there's no one in the world who can stand up and say I was involved in raping and assaulting people,” and recounting that he “started to cry” over the shuttering of Abercrombie's Fifth Avenue store.
Jeffries' attorneys have argued that he suffers from Alzheimer's disease and Lewy body dementia, leaving him unable to understand the case against him or meaningfully assist in his own defense. Two psychologists and a psychiatrist have testified in support of that position, as reported by The Associated Press. The defense says the former CEO would not have discussed competency on a recorded prison line if he truly lacked capacity.
How Judges Decide Competency
Federal judges rely on what is known as the Dusky standard, which asks whether a defendant has “sufficient present ability to consult with his lawyer with a reasonable degree of rational understanding,” along with a rational and factual grasp of the proceedings. Medical evaluations, expert testimony and the defendant's own statements all come into play when a court decides whether to move ahead to trial, according to Cornell Law School.
Prosecutors Say the Tapes Undercut Incompetency Claims
Prosecutors argued that the prison recordings show Jeffries talking strategy and reacting to the allegations in a way that undercuts the picture of severe cognitive decline painted by the defense. Court filings also note that investigators seized roughly $11 million in cash and pointed to a Hamptons estate valued at about $28 million in connection with the case, details reported by Business Insider.
Charges, Co-defendants and Penalties
A 2024 federal indictment accuses Jeffries, his partner Matthew Smith and an employee, James Jacobson, of running an international sex-trafficking and interstate prostitution operation. All three have pleaded not guilty, according to The Associated Press. If convicted on the trafficking charges, they face a mandatory minimum sentence of 15 years in prison and could receive up to life.
Why It Matters
The competency ruling will determine whether this closely watched case moves toward a full-blown trial, while also keeping the spotlight fixed on a retailer that has spent years trying to clean up its public image. For a deeper look at Abercrombie's financial rebound and corporate repositioning, see Hoodline's coverage of the brand's $5 Billion Comeback.
Ultimately, the judge's decision on Jeffries' competency will shape the next phase of a case that has drawn national attention and could influence how prosecutors approach allegations involving powerful figures in the fashion industry. The court is expected to weigh the full mix of clinical testimony, documents and Jeffries' own recorded words before ruling on whether he is fit to stand trial.
