Jacob "The Jeweler" Arrested For Money Laundering

June 18, 2006 By:

The famed Manhattan King of the” bling bling” was arrested for helping two coke kingpins launder some of their $270 million in dirty drug profits by selling them jewelry. Jacob “The Jeweler” Arabo who has been known to encrust bling for P. Diddy, Madonna, Victoria Beckham, Allen Iverson and many more celebrities is in big trouble.

According to a Detroit federal court, Jacob was involved with the Black Mafia Family, where he received large sums of currency for various pieces of jewelry.

The indictment claims Jacob failed to file tax forms required for business transactions totaling more than $10,000, or submitted false tax forms that declared the purchasers were people other than the actual buyers. The scheme allegedly was designed to conceal that the jewelry purchases were made with proceeds from the Black Mafia Family's sales of thousands of kilos of cocaine in Detroit, California, Kentucky, Georgia, Texas and elsewhere, and to hide the true ownership of those funds. The gang's alleged leaders operate BMF Entertainment, a rap-music label, and have extensive connections in the hip-hop world, as does Arabo.
,br>Jacob was arrested at 8:30 a.m. at his Jacob & Company boutique at 48 E. 57th Street by federal agents, and led away in handcuffs. The boutique was shuttered for the rest of the day, with a sign hung on the doorway saying, "Closed for inventory," on Jacob & Company stationery.

I guess making millions off of a piece of watch is not enough for some people in this world. Wonder who will supply the “bling bling” to the stars?