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U.S. Urges To Capitalize On Hamas Leader's Death; Ex- Abercrombie CEO Indicted On Sex Trafficking Charges; Blinken Meets Israeli Officials In Push To Revive Gaza Talks. lobal Leaders Gather in Russia for First Day of Meetings of the BRICS Summit; Former Abercrombie CEO Indicted on Sex Trafficking Charges; CDC Reports That at Least One Person is Dead in a Multi-state E. Coli Outbreak Tied to McDonald's Quarter Pounders. Aired 2-2:45a ET

Aired October 23, 2024 - 02:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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[02:00:22]

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: Hello. And welcome to our viewers joining us from all around the world, and to everyone streaming us on CNN Max. I'm Rosemary Church.

Just ahead. America's top diplomat meets with the Israeli prime minister, pressing him to capitalize on the death of the Hamas leader and end the fighting in Gaza.

A new report suggests Donald Trump privately praised the loyalty of Nazi military leaders, saying he needed "the kind of generals Hitler had."

And prosecutors charged the former CEO of Abercrombie and Fitch with international prostitution aspiring male models allegedly forced to perform sex acts at upscale parties.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Rosemary Church.

CHURCH: And we begin in the Middle East, where deadly Israeli air strikes are targeting sites in South and North East Lebanon and Beirut's southern suburbs.

Israel Defense Forces claims two buildings flattened by a strike in a Beirut suburb were Hezbollah weapons storage facilities. There's been no word on casualties there, but Lebanon's health ministry says at least 10 people were killed in two separate strikes on Tuesday. Lebanon reported the highest daily death toll in three weeks on Monday when 63 people were killed, taking the total number to nearly 1900 since the conflict began.

The IDF says a possible successor to the late Hezbollah leader and other commanders of the Iran-backed group were killed in an attack in Beirut earlier this month. Hezbollah is yet to confirm that claim.

Meantime, the U.N. human rights chief says he is appalled by an Israeli strike on Monday near Beirut's Rafik Hariri University Hospital that caused significant damage and killed at least 18 people. The IDF says it hit a Hezbollah terrorist target.

Well, U.S. Secretary of State, Antony Blinken is in the Middle East and will head to Saudi Arabia in the hours ahead. This comes a day after he sat down with Israeli Prime Minister Benjamin Netanyahu and other top officials as part of a push to revive Gaza ceasefire and hostage talks. CNN's Jeremy Diamond has details from Tel Aviv.

JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: In his 11th visit to the region since the beginning of the war, Secretary of State Antony Blinken sat down with the Israeli Prime Minister Benjamin Netanyahu for over 2-1/2, and it came with one critical message to the Israeli government, that right now is a golden opportunity to end the war in Gaza and strike a deal to free the hostages.

In particular in the wake of the killing of Hamas leader Yahya Sinwar. The Israeli Prime Minister, though we're not sure if he's actually on the same page. In the wake of Sinwar's killing, we've heard a lot of defiance, a lot of bluster from Netanyahu and certainly that's been reflected on the ground in Gaza where the Israeli military is certainly showing no signs of letting its foot off the gas carrying out this major offensive in northern Gaza.

The Israeli prime Minister in his statement, focused much more on updating the Secretary of State on the fight in Gaza, focusing on preparations for a retaliatory strike against Iran. The only fig leaf that he did offer was in this statement from the Prime Minister's office, saying that the killing of Sinwar could have, "was likely to have a positive influence on the return of the hostages and achieving the objectives of the war."

Now, one other major focus of this meeting, according to a senior U.S. official, was the ongoing and deteriorating humanitarian situation in Gaza. And Blinken's meeting with Netanyahu came a week after this letter from the United States, two top Israeli officials making clear that if there aren't steps taken in the next 30 days to improve the humanitarian situation in Gaza, then U.S. military aid to Israel could be in jeopardy.

And indeed, it was a major focus of this meeting. And Blinken focused on the steps that he believes Israeli officials have already begun to take, but also made very clear that it's simply not enough at this stage taking through a list of items that Israel needs to take care of. We're also told that Blinken actually pressed the Israeli Prime Minister directly on this so-called Island Plan which resembled quite closely what we are seeing in northern Gaza.

[02:05:03]

This idea of forcing the displacement of hundreds of thousands of Palestinian civilians living in northern Gaza and then effectively laying siege to those who still remain. And indeed, over the course of the last couple of weeks, we have seen almost no aid getting into northern Gaza and hospitals there now describing absolutely deteriorating situations. But when pressed on that, U.S. official said that Netanyahu and his top aide, Ron Dermer, denied that this island plan is what the Israeli government is actually implementing.

We're told that U.S. officials then urge them to publicly deny this, saying that there is a public perception out there that's really detrimental to Israel. We haven't yet heard any official statement from the Israeli government or the Prime Minister himself.

Jeremy Diamond, CNN, Tel Aviv.

CHURCH: Our next guest is the author of Rise and Kill First: The Secret History of Israel's Targeted Assassinations. Ronen Bergman is also a staff writer at The New York Times Magazine, and comes to us from Tel Aviv. Thank you so much for joining us.

RONEN BERGMAN, AUTHOR, RISE AND KILL FIRST: THE SECRET HISTORY OF ISRAEL'S TARGETED ASSASSINATIONS: Thank you for the invite.

CHURCH: So, in his high stakes meeting with Benjamin Netanyahu, U.S. Secretary of State, Antony Blinken urged Israel to capitalize on Yahya Sinwar's killing by ending the war in Gaza and securing the release of the hostages. How likely is it that Netanyahu will do that?

BERGMAN: Well, I think that, as your reporter just indicated the Secretary of State was not highly confident that Mr. Netanyahu on the same page with him. Prime Minister Netanyahu has been saying for very long time that Israel will continue the fight in Gaza until the utmost of the superior victory. But did not define what's the characterization. What are the characterizations of this victory?

And it's not clear what exactly are the orders that the Israeli government is giving to the Israeli military who is conducting the fighting. And it's not just me who says this, but this Israeli high- rank defense officials who believe that the war, that at least most of the goals of the war, were achieved long ago. And, of course, achieved after the killing of the leader of Hamas in Gaza and say the world Yahya Sinwar just last week.

The difficulty is that the IDF, Israeli Defense Forces believe that this war cannot be -- cannot end and cannot be won without the closing leg of a political settlement, without discussing the day after who will be a viable alternative to Hamas, what can be -- what sort of a regime, what sort of government, some kind of new page that will be an alternative, not just from the Israeli population in the -- on the border and, of course, to guarantee their safety that something like October 7th will not have again, but also for the Palestinians.

Mr. Netanyahu has other considerations that are superior to these. He is afraid to the integrity of his coalition and he's afraid that if he will call the Palestinian authority to help which are basically the only alternative to Hamas, then the right of (INAUDIBLE) coalition will disassemble that and he puts that as the first -- maybe the only priority.

CHURCH: And that's the thing. I mean, what is Prime Minister Netanyahu endgame here? Because clearly, the United States would like to see the situation of a two-state solution once this war ends. But that's not something that Netanyahu and his government is interested in at all, is it?

BERGMAN: On the -- on the contrary, while -- at the beginning of the war, shortly after the beginning of the Israeli maneuver, the invasion into Gaza, which was seen, I think -- quite a significant international legitimacy and also domestic legitimacy in Israel, Mr. Netanyahu said, we are not into staying in Gaza whatsoever. This is a military maneuver that is aimed to dismantle Hamas military capabilities, and that's it.

Now he has ordered the military under strong, strong objection from the military to start preparation for continuous, long military rule of Gaza, which means that the military will need to take upon its own responsibility, not just dismantling Hamas and fighting Hamas, difficult as it is, but also taking care of the -- all the civil -- civilian issues of millions of people now refugees, many of them without -- with no homes that they need to take care of them.

[02:10:16]

And also, the calls from the ultra-national -- nationalist extreme part of this coalition to rebuild the settlements in the Gaza Strip, those that were dismantled by Prime Minister Ariel Sharon in 2005 that at the beginning, we're seeing like some kind of Messianic ferry -- on a Frenchman fraction of minority in Israel and now getting more and more backward from members of the Parliament, not just of the ultra- right but also from the right-wing, Likud party, Netanyahu's party.

And just two days ago, there was a massive demonstration for reestablishment and annexing the Gaza Strip.

CHURCH: Yes, indeed. And, you know, I want to talk to you about the U.S. election. It's just 13 days away and some critics have suggested that Benjamin Netanyahu is just waiting this out until his friend Donald Trump is elected, if he is elected as the new U.S. President. What are you hearing about that and how likely is it that that is indeed the scenario playing out?

BERGMAN: Well, you will -- you'll be a much better expert to tell me who will win the U.S. elections. But from Netanyahu's point of view, I think he has put on hold, many things, including the hostage -- the discussion of a possible hostage deal, a hostage deal that will bring up the 100 live and dead Israeli hostages from Gaza, but will also bring a permanent ceasefire will also release Palestinian prisoners the end of the war.

And I think according to many, he did not say that overtly, but many people who work with Mr. Netanyahu say he is only waiting for the results of the elections. But it's not just Mr. Netanyahu, it's also the U.S. administration. The U.S. administration, the White House, the State Department, the state secretary has basically stopped pressuring Mr. Netanyahu to make a deal in the last 2-1/2 months.

And to the utmost surprise of Israeli defense officials, it's not just that they stop pressuring Mr. Netanyahu, they also put all the blame for not making a deal on the other side on Hamas. Something that I would say is not, at least, entirely correct. CHURCH: All right. Ronen Bergman, thank you so much for joining us. Appreciate it.

BERGMAN: Thank you.

CHURCH: In about 19 hours, CNN will host a town hall with Democratic presidential nominee Kamala Harris as the race for the White House moves toward the finish line with no clear leader in sight. With 13 days before the election, both candidates are looking for every opportunity to win over undecided voters. On Tuesday, Trump and Harris campaign surrogate Barack Obama traded insults on the stump.

The former president rallied in support of Harris in the battleground state of Michigan, delivering a blistering critique of Trump.

(BEGIN VIDEO CLIP)

OBAMA: Donald Trump is a 78-year-old billionaire who has not stopped whining about his problems since he wrote down his golden escalator nine years ago. And when he's not complaining, when he's not doing some strange tweet, he's trying to sell you stuff. All he cares about is his ego and his money and his status. He's not thinking about you. For him, power is nothing more than a means to his ends.

We do not need to see what an older, loonier Donald Trump looks like with no guardrails. America is ready to turn the page. We're ready for a better story.

(END VIDEO CLIP)

CHURCH: At a rally in North Carolina, Donald Trump fired back at Barack Obama and the celebrities who have come out in support of the Democrats.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R) PRESIDENTIAL CANDIDATE: And I think he's a real jerk, because I've watched him campaign over the last couple of -- over the last couple of days, I watched him campaign. What a divider he is, right? What a divider he is. He divide this country, he couldn't care less him and his little group of people.

[02:15:04]

But, you know, the reason they bring him out and other people, they're bringing out all these other people. You know, nobody goes to their rallies. Nobody goes there. So, you know what they do? They bring in so called stars, stars that I've never even heard of.

(END VIDEO CLIP)

CHURCH: Meanwhile, Trump continues to claim, without evidence, that the upcoming election is being rigged against him. There's growing concern about what might happen if he loses. Kamala Harris spoke with NBC News about how her team is preparing for that, or if Trump tries to claim victory before all votes are counted. (BEGIN VIDEO CLIP)

HARRIS: We will deal with election night and the days after, as they come and we have the resources and the expertise and the focus on that as well.

(CROSSTALK)

HALLIE JACKSON, NBC SENIOR WASHINGTON CORRESPONDENT: So, your team is ready to go? Is that what you're saying? Are you thinking about that as a possibility?

HARRIS: Of course. This is a person -- Donald Trump, who tried to undo the free and fair election, who still denies the will of the people who incited a violent mob to attack the United States Capitol and 140 law enforcement officers were attacked, some were killed. This is a serious matter.

(END VIDEO CLIP)

CHURCH: Trump's campaign is angrily denying some harsh new claims made against him in a new story published by The Atlantic. The article claims that while serving as president, Trump praised Adolf Hitler's military leaders saying he wished U.S. military personnel showed him the same deference. The article says multiple sources confirmed that Trump said, "I need the kind of generals that Hitler had. People who were totally loyal to him, that follow orders."

The article also says Trump was furious when he was told how much the funeral for a fallen service member cost, after he publicly offered to pay for it. The Atlantic claims when Trump got the $60,000 bill for Private First Class Vanessa Guillen's funeral, he said it doesn't cost 60,000 bucks to bury an effing Mexican. Guillen, who was bludgeoned with a hammer on the Texas base where she worked, was Mexican- American. Again, the Trump campaign strongly denies both allegations.

Ron Brownstein is CNN senior political analyst and the senior editor for The Atlantic. He joins me now from Sonoma in California. Appreciate you being with us.

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Hi, Rosemary.

CHURCH: So let's start with that bombshell article in your publication The Atlantic, where Jeffrey Goldberg writes about Donald Trump apparently saying in the closing days of his presidency that he "needs the kind of generals that Hitler had." Two sources confirmed Trump said this, one of them former Trump Chief of Staff General John Kelly who also said in a New York Times interview that Trump fits the definition of a fascist and has previously said that Hitler did a lot of good things.

Now the Trump campaign denies all of this. What's your reaction and what impact will it likely have on voters with just less than two weeks to go to election now?

BROWNSTEIN: Yes. This is an extraordinary moment. I think it is the testimony from John Kelly, who, let's remember, is a retired four-star general, the former head of the Southern Command, who was Donald Trump's Cabinet Secretary at the Department of Homeland Security and later his White House Chief of Staff saying today publicly, amid all the tradition reluctance of former military officers to say anything that affects American politics, he is saying publicly that based on his close personal interaction over years with Donald Trump, he believes he fits the definition of a fascist.

Does not understand the basis of American constitutional democracy and is fundamentally an authoritarian. It is as stark a warning as we have ever heard. I believe about a presidential candidate from someone who was at his elbow in the White House for years, I believe his longest serving chief of staff. And, you know, we can't say yet what impact this will have, except it does reinforce what we have already seen, what we saw yesterday when Vice President Harris campaigned with former Republican Representative Liz Cheney across three white collar suburbs outside Philadelphia, Detroit and Milwaukee, in the states that are most likely to decide the presidential race, appealing to the white-collar republicans sometimes thought of as Haley voters who are the most uneasy with Trump.

I suspect we're going to hear what General Kelly said quite a bit on television and radio between now and the end, and it really poses, I think, a very stark choice for all Republicans who are finding a way to kind of, all, you know, bite their lip about their reservations about Trump. This is very stark testimony and a very clear warning.

[02:20:04]

CHURCH: Yes. No doubt. We'll see them in ads, I'm sure. So, Vice President Kamala Harris did two interviews on Tuesday on NBC. Harris said she and her team were prepared for the possibility that Trump would declare victory before all votes are counted. She also declined to say if she would pardon Trump if she were to win the election, and refused to be drawn into discussion on any concessions on fundamental freedoms like abortion.

What stood out to you in that interview? And could any of it move the needle for Harris, do you think?

BROWNSTEIN: Well, first of all, I -- as I said about Joe Biden, I think there's no chance that a Democratic president will pardon Donald Trump, that the forward argument that the country would be torn apart by a trial of an ex-president. I cannot imagine them finding persuasive, especially after arguing, as they have, that he is an existential threat to American democracy. So, you know, I don't think there's anything that interview that's really going to change things very much.

I mean, you know, we are talking about a race at the margins. You know, it's interesting. I mean, Harris is obviously more competitive than Biden was among voters of color, and as a result, is more competitive in the Sunbelt battlegrounds of Georgia, North Carolina and the Southeast, Arizona and Nevada and the Southwest. But even though she's more competitive, it's not clear that she can really win any of those. Which means that her path to the White House may be the same as Biden's in the end, which is sweeping the three Rust Belt battlegrounds that were in the blue wall that Trump dislodged from the blue wall in 2016 places where she was with Liz Cheney yesterday, Michigan, Pennsylvania and Wisconsin. And those are states where the election administration process, you know, is -- I think, in safe hands, Democratic governors and all of them.

Ultimately, the Electoral Count Act reforms passed by Congress in '22 give the governor the final word on certifying the winner. So, Trump can rage and storm and you know, the Speaker of the House, if Republicans hold the House, may support him and create mischief down the road but he doesn't control the government this time. So, his ability, I think, to try to undermine the election is significantly reduced.

CHURCH: And Ron Trump was in Miami Tuesday talking about the dangers of immigration. He was doing that at a Latino roundtable. He sees it as a winning issue, even when pitching to Latino voters, and that's where he also attacked Harris, saying she took the day off because she's lazy, despite the fact, of course, we know she was doing interviews. So, what is your response to what he said at that roundtable and is his message resonating with Latino voters?

BROWNSTEIN: Well, there's an enormous gender gap among Latinos. I was just looking at another poll by the best democratic firm that analyzes the trends among Latinos, a polling firm, and they found Trump running even among Latino men, which is, you know, in one sense, not extraordinary in that Latino families often are living at the economic margin, and they truly have been squeezed and battered by inflation.

But it is also kind of remarkable from the other angle, when you consider that Trump is openly talking about a, you know, not only talking about pledging, promising. A militarized mass deportation unprecedented in American history, that would remove potentially millions of people over a presidential term to intern in camps and then out of the country. Democrats have chosen not to really contest him very much on that ground.

I mean, Harris, on multiple opportunities, has had the chance to challenge that idea. Has chosen not to try to emphasize our own strength on the border, but the prospect that Trump will make significant gains among Latino men, if not necessarily Latino women, truly does complicate her task in the southwest states of Nevada and Arizona. And is one reason why I believe that you know this kind of paradoxical situation, that the Rust Belt battlegrounds are more fertile ground for her as they were for Biden, precisely because they are more white.

And Democrats are holding their support among white voters compared to 2020, better than they are, certainly among Latino voters, and maybe even better than they are among black voters.

CHURCH: Ron Brownstein joining us from Sonoma in California. Many thanks as always. Appreciate it.

BROWNSTEIN: Thanks for having me.

CHURCH: India presents itself as the next economic superpower but the current reality of high unemployment is pushing some young Indians to make a risky journey to the U.S. We'll have details for you on the other side of the break. Stay with us.

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[02:26:49]

CHURCH: Welcome back, everyone. A new trend could strain relations between the United States and India, as illegal immigration remains a key issue in the 2024 presidential election. India is the world's fastest growing major economy, but unemployment is very high in some areas. So young Indians who dream of a better life are paying thousands of dollars to make a do or die journey to live the American dream.

CNN's Ivan Watson has our story.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Hiking through jungles and crossing rivers, a video blogger from India showing his trip through Central America to the U.S.-Mexico border. Nearly 100,000 Indians crossed the border illegally into the U.S. last year, a journey many Indians call the donkey way.

ANKIT CHAUDHARY, LAW STUDENT: Donkey way is an illegal route which is not allowed by the USA government. It's a route which is going through many of the countries and then we will jump the wall of USA.

WATSON (voice-over): Ankit Chaudhary is a 24-year-old law student who dreams of migrating to the U.S. to escape joblessness in India.

CHAUDHARY: I have no other option due to unemployment.

WATSON (voice-over): And he's not the only young Indian desperate to leave. Many Indian cities have districts like this.

WASTON (on camera): This is one of the consequences of India's high youth unemployment. Entire neighborhoods of businesses dedicated to helping young Indians move overseas.

WATSON (voice-over): Amid consultants who help Indians get visas to study abroad, Chaudhary says you can also find smugglers who specialize in the donkey route.

WATSON (on camera): We can go here and find someone and pay money to be smuggled to the U.S. here.

CHAUDHARY: They will smuggle the person illegally in U.S.

WATSON (on camera): How many people have you sent on this donkey route journey to the U.S.? WATSON (voice-over): At least 150 to 200 people, he says. For around $48,000 this agent will fly you to El Salvador and smuggle you over land to the U.S.-Mexico border. He shows me this video of some of his clients squeezing through the border fence.

UNIDENTIFIED MALE: Let's go. Let's go. Let's go.

WATSON (on camera): These are your customers?

UNIDENTIFIED MALE: Two of them.

WATSON (voice-over): The number of Indian migrants crossing the border into the U.S. surged over the last five years. But two Indian smuggling agents now tell CNN they've all but stopped sending migrants to the U.S. in the last couple of months after a Biden administration Executive Order cracked down on asylum applications.

In September, Customs and Border Protection reported the lowest number of migrants crossing the U.S.-Mexican border since 2020.

That's little comfort to Rajiv Kumar (ph). Last year, his brother left the family farm for the donkey way to the U.S. Kumar says, Indian authorities returned Malkit's (ph) body nearly five months later after he was shot dead by criminals on a river bank on the El Salvador, Guatemala border.

[02:30:08]

The family's lone surviving son now farms these fields alone.

RAJEEV KUMAR, MALKEET'S BROTHER (through translator): People here know they will die from unemployment, so they think it is better to go and take the risk. For people here, it has become do or die.

WATSON (voice-over): A vicious cycle of poverty and illegal migration that's emptying out communities in this part of India.

Ivan Watson, CNN, in Haryana State, India.

ROSEMARY CHURCH, CNN ANCHOR OF "CNN NEWSROOM": Still to come, the first official day of meetings is about to kick off at the BRICS summit in Russia. We'll tell you what's likely on the agenda for host Vladimir Putin and his global guests. Back in just a moment.

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CHURCH: Heads of State are starting to arrive for the first official day of the BRICS Summit in southwest Russia, the gathering of global heavy hitters and emerging economies is being hosted by President Vladimir Putin. It's been described by some as a convergence of nations who want to see a shift in the global balance of power, although President Putin has denied it's an anti-West alliance. CNN's Steven Jiang joins me now live from Beijing. Good to see you, Steven. So, what's on the agenda for the day ahead?

STEVEN JIANG, CNN BEIJING BUREAU CHIEF: Yeah, Rosemary, this is going to be the first day of official plenary sessions for this year's BRICS Summit. Now, this of course is a newly expanded group, not only now including the original members of its acronym, Brazil, Russia, India, China, and South Africa, but also with new members, Egypt, Ethiopia, Iran, and the UAE. But from Moscow's perspective though, the optics is probably equally, if not more important than the substance because this is the first major international gathering inside Russia since Moscow's invasion of Ukraine.

So, the message from Moscow's very much, despite the best effort by the U.S. and its Western allies, even though Putin is still a pariah in the West, here in this city, he's very much playing host to leaders and representatives from dozens of countries and entities showing how Putin and his country still command the respect of many, governments around the world and still able to maintain or even grow friendly and robust ties with many entities. And the other thing of course, is the timing, very good for Putin because as Russian forces continue to intensify their efforts inside Ukraine, and we see some war fatigue creeping up among some of Ukraine's allies, not to mention we have that crucial election in the U.S. less than two weeks away, and the potential victory for Donald Trump, of course, could see the U.S. shift its support for Ukraine and its ties with other traditional allies.

[02:35:00]

And then of course, there's also the Middle East conflict still raging on, and that has seen many developing countries united in their dissatisfaction or even anger against the U.S. policy in that region. All of that, of course, play into the hands of Putin and perhaps the hands of Chinese leader Xi Jinping as well, the two men very much bounded over their desire, their willingness to reshape this U.S.-led world order.

Now, the question here is whether or not these leaders are able to translate their rhetoric into concrete policies or real solutions. People are less sure about that because of divergent priorities and viewpoints. Some members like India, Rosemary, for example, they are not really trying to see this platform which originally emerged as a partnership of emerging economies into -- turning this into a club of anti-U.S. members. Rosemary?

CHURCH: Steven Jiang in Beijing, many thanks for that report. Appreciate it. And we'll be right back.

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CHURCH: The former CEO of Abercrombie & Fitch is due to be arraigned in New York on Friday on federal sex trafficking and international prostitution charges. Prosecutors allege Mike Jeffries and two others exploited young men with promises of modeling and career opportunities while he was head of one of the world's top clothing brands. CNN's Brynn Gingras has details.

(BEGIN VIDEOTAPE)

BRYNN GINGRAS, CNN U.S. NATIONAL CORRESPONDENT (voice-over): Oozing sex and style in their edgy and sometimes criticized advertising, Abercrombie & Fitch soared in popularity in the early 2000s. Michael Jeffries, who led the company at that time, now federally charged in a sex trafficking and prostitution scheme. Prosecutors accusing the former CEO of targeting men, some aspiring models who wanted to work for the brand.

BREON PEACE, U.S. ATTORNEY FOR THE EASTERN DISTRICT OF NEW YORK: The potential of an opportunity at Abercrombie to be in an ad and things like that were wanted some of the carrots that I think people perceived as what they would achieve by participating in this activity.

GINGRAS (voice-over): The 16-count indictment alleges 80-year-old Jeffries, his romantic partner Matthew Smith, and a third man, James Jacobson, worked together to recruit dozens of men in the U.S. and abroad, often paying them to attend sex events.

PEACE: Jeffries, Smith, and Jacobson used force, fraud and coercion to traffic those men for their own sexual gratification.

GINGRAS (voice-over): The victims were physically groomed, forced to sign non-disclosure agreements, and then pressured to drink, take drugs like muscle relaxers and Viagra before performing sexual acts on Jeffries and Smith, the indictment reads.

PEACE: We think we have a lot of evidence that corroborates the charges in this case.

[02:40:00]

UNIDENTIFIED FEMALE: He was viewed as a form of genius.

GINGRAS (voice-over): Allegations like those detailed in the charges began bubbling a year ago, following the release of the BBC documentary, "The Dark Side of Cool."

UNIDENTIFIED MALE: What happened to me changed my life and not for the better.

GINGRAS (voice-over): What soon followed, a civil lawsuit filed by dozens of men who say they were preyed upon by Jeffries, and an investigation which led to the new charges. At the time, Abercrombie & Fitch under new leadership called the claims appalling and disgusting, and were already dealing with another scandal.

UNIDENTIFIED MALE: Abercrombie & Fitch said, we go after the cool kids.

GINGRAS (voice-over): After this Netflix documentary accused the brand of rampant racism and discrimination in its hiring process, also while Jeffries was at the helm. In a statement to CNN, Jeffries and Smith's attorneys saying they will respond to the new allegations in the courtroom.

(END VIDEOTAPE) GINGRAS (on camera): Jeffries was released on $10 million bond after being arrested in Florida. He and his co-defendants will be in New York to face a judge on Friday for these charges. Now, it's also very important to note that Jeffries retired from Abercrombie & Fitch in 2014. The company says, since then, it has worked very hard to change its management structure within and also rebrand itself to be more inclusive.

Brynn Gingras, CNN, New York.

CHURCH: The U.S. Centers for Disease Control and Prevention has issued a food safety alert for an E. Coli outbreak linked to McDonald's Quarter Pounders. At least one death has been reported so far and 10 people, including a child, have been hospitalized. The U.S. Food and Drug Administration says slivered onions are a likely source of contamination and that onions and patties have been removed from restaurants in 12 states. Nearly 50 illnesses have been reported across 10 of them, with most of the cases originating in Colorado and Nebraska.

McDonald's says we are working in close partnership with our suppliers to replenish supply for the Quarter Pounder in the coming weeks. In the meantime, all other menu items, including other beef products, are unaffected and available.

I want to thank you so much for joining us. I'm Rosemary Church. "World Sport" is coming up next. Then I'll be back in about 15 minutes with more "CNN Newsroom." Do stay with us.

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