'Jacob the Jeweler' pleads guilty, could face prison

Jacob the Jeweler, pictured here with pop star Fergie, could face 37 to 46 months in prison and up to $2 million in fines under his plea agreement.

Detroit—Jacob Arabov, known among his celebrity clients as "Jacob the Jeweler," pleaded guilty in federal court on Wednesday to falsification of records and making a false statement to a federal agent in connection with a federal money-laundering investigation in Detroit that involved a drug ring.

Under the plea agreement, Arabov could face 37 to 46 months in prison and up to $2 million in fines, but federal prosecutors in Detroit dropped all money-laundering charges against the jeweler, according to a statement from his New York attorney, Benjamin Brafman, of Brafman and Associates.

The plea stems from a money-laundering case that Arabov was charged in last summer.

Arabov, 42, was arrested in New York on June 15, 2006, after federal authorities in Detroit charged him with "conspiracy to launder monetary instruments" in a 13-count indictment that also named 15 others. The indictment alleged that Arabov helped members of the "Black Mafia Family" launder cash that it made selling drugs all over the country during the 1990s, court papers said. He pleaded not guilty to those charges, and his trial had been set for later this year.

Arabov, a Russian immigrant, who opened his own business in New York in 1986, became popular among hip-hop and rhythm and blues artists in the mid 1990s after he attracted the attention of Faith Hill and her husband, the late Notorious B.I.G.

An award-winning designer whose clients include Jay-Z, Beyoncé Knowles and Victoria Beckham, Arabov opened a flagship store on 57th Street in Manhattan in December 2004, showcasing his diamond-intensive jewelry and complications-heavy watches that featured multiple time zones.

Brafman said Arabov is a fundamentally honest citizen who used bad judgment in an attempt to conceal his dealings with "a small group of individuals."

"Mr. Arabov is one of the most brilliant and successful high-end jewelry entrepreneurs in the world," Brafman said in a media release. "His is a story of remarkable accomplishment achieved through creative genius and extraordinary talent. The isolated instance of criminal wrongdoing, while serious, should not define his lifetime of hard, honest work. Jacob is confident and hopeful that both the court and the business community will recognize him as a fundamentally decent, honorable man who used very poor judgment, but to his credit, has accepted responsibility for his conduct."

In a statement of his own, Arabov said he has always been blessed with loving friends and family.

"I realize I have made a terrible mistake and I accept the consequences of my actions," Arabov said. "America is the greatest country on earth and I have great regret that I violated the law. My desire is to do whatever I can to atone for my wrongdoings and move ahead with the great business I have built and the wonderful family that I love."
Source: nationaljewelernetwork