Jacob The Jeweler Pleads Not Guilty To Money Laundering
Jacob (born Jacob Arabov) was arrested outside his flagship store in New York on Thursday morning (June 15). The infamous jeweler was among 16 people indicted by a Michigan DA in May for violating federal drug laws and laundering an excess of $270 million.
Jacob is accused of accepting "dirty" money generated by Atlanta-based drug organization the Black Mafia Family (BMF) and giving them jewelry in return without reporting the transactions.
The indictment, which is part of a previous indictment alleging that the BMF distributed 476 kilos of cocaine throughout the US since the early '90s, also seeks criminal forfeiture of more than 30 pieces of jewelry, in addition to a number of residences and cars.
During yesterday's brief hearing, Jacob was ordered to appear in a Michigan court on July 10 and was freed on a $100,000 bond.
"The arrest of Mr. Arabov is the result of an unfortunate misunderstanding that we believe will be straightened out in the next several weeks," Paul Wilmot, a spokesperson for the jeweler, told reporters.
This is not the first time the infamous jeweler has been to court. In February, Arabov sued Damon Thomas, one-half of the hip-hop production duo The Underdogs, for failing to make payments on jewelry costing around $2 million.
BMF Entertainment made headlines last October when the DEA arrested over 30 of their members, seizing $3 million in cash, 2 kilograms of cocaine and various weapons.
Members of BMF were also associated, along with Young Jeezy, in the assault of Atlanta rapper Gucci Mane.