1:27 PM PT -- Michael Jeffries, the ex-CEO of Abercrombie & Fitch, has been released on bond following his indictment Tuesday ... TMZ has learned.

A spokesperson for the U.S. Attorney's Office for the Eastern District of NY tells TMZ ... the controversial businessman has been released on a $10 million bond. Meanwhile, his boyfriend, Matthew Smith, who was also included in the indictment, was released on a $500K bond.

As for James Jacobson, who allegedly lured in men to participate in "sex events," was detained.

Jeffries and Jacobson are set to be arraigned Friday afternoon at a federal courthouse in Long Island.

The Ex-CEO of Abercrombie & Fitch is mirroring the lifestyle Diddy allegedly lived ... at least according to the feds who've now secured an indictment against Michael Jeffries for very similar crimes.

A grand jury hit Jeffries -- who was Abercrombie's CEO from 1992 to 2014 -- with 15 counts of interstate prostitution and one count of sex trafficking. The indictment includes Jeffries' BF Matthew Smith and James Jacobson, who allegedly recruited men for "Sex Events" ... and made them have sex with him in "tryouts."

According to prosecutors for the Eastern District of NY, Jeffries and co. fully exploited his Abercrombie power, running "a business that was dedicated to fulfilling their sexual desires and ensuring that their international sex trafficking and prostitution business was kept secret."

The feds say the defendants engaged in a quid pro quo from 2008 to 2015 ... leading men to believe they could score modeling gigs with Abercrombie if they participated in the "Sex Events" -- which really sound like the "Freak Offs" described in Diddy's case.

In docs, prosecutors say the parties involved large sex toys, high-pressured enemas and the shaving of men's genitals -- and attendees were pushed to drink booze, and take Viagra and muscle relaxants called "poppers."

The feds also claim they would intentionally recruit heterosexual men, forcing them to engage in certain sex acts ... even though they were unwilling.

Jeffries, Smith and Jacobson were arrested Tuesday -- and much like, Diddy, prosecutors acknowledge their investigation was sparked by civil lawsuits filed last year against Jeffries and Abercrombie & Fitch.

Just as this indictment alleges, those lawsuits claimed Jeffries used the company to lure young men into sex parties by promising them modeling jobs. Abercrombie has reportedly settled some of those suits.

In announcing the charges Tuesday, the United States Attorney for the Eastern District of New York Breon Pearce said ... "To anyone who thinks they can exploit and coerce others by using the so-called casting couch system, this case should serve as a warning: prepare to trade that couch for a bed in a federal prison."