Jacob “The Jeweler” Indicted on Federal Money Laundering Charges
Jacob “The Jeweler” Arabo, longtime provider of custom jewelry to rap stars and celebrities the world over, was arrested on federal money laundering charges yesterday (June 15) in New York, the Associated Press reports. Jacob, whose real name is Yakov Arabov, was among 16 defendants named in an indictment handed down by the Detroit US Attorney’s office. The Feds allege that Arabov, 41, conspired with the Detroit-based Black Mafia Family (BMF) to launder the proceeds of their illegal drug business. The Russian-born jewelry mogul was arrested in his midtown Manhattan showroom around 8:30 a.m. and promptly posted a $100,000 bond after an appearance in U.S. District Court.
In October 2005, the DEA arrested a group of around 30 individuals with alleged ties to the Black Mafia Family. Over three million dollars in cash were confiscated along with more than two kilos of cocaine and several weapons. The government agency suspects the organization is responsible for the distribution of more than 400 kilos of cocaine and the laundering of $270 million dollars in illicit funds. It is alleged that Jacob facilitated the laundering by exchanging expensive jewelry for dirty cash. A spokesman for Arabov’s high-end jewelry business, Jacob & Co., issued a statement saying that the arrest was “the result of an unfortunate misunderstanding that we believe will be straightened out in the next several weeks.”