The 77-year-old has been accused of sexually assaulting and exploiting young women and girls who had been lured in with offers of cash and lucrative modelling contracts.
In a US lawsuit filed by 10 women this month, Mr Nygard, right, is accused of using drugs, alcohol and force to coerce them into “sex acts”, with allegations going back 40 years.
Yesterday a search warrant was executed at his Manhattan offices, leading him to resign as chairman of his Nygard International brand.
The Finnish-Canadian multi-millionaire denies any wrongdoing. His spokesman said his California office had also been searched, adding that he “welcomes the investigation and expects his name to be cleared”.
Mr Nygard has been under investigation by a child exploitation FBI taskforce for the past five months.