CHARGES FOR CELEB JEWELER

The jeweler known for putting diamonds on celebrities from Kanye West
to Elton John was arrested yesterday in connection with a multistate
drug and money-laundering ring.

Yakov Arabov, known throughout the hip-hop world as Jacob Arabo or
"Jacob the Jeweler," was arrested on money-laundering charges.

Arabov, who appeared briefly in U.S. District Court in Manhattan
after his arrest, did not want to comment, said his lawyer, Daniel
Gotlin. "It's been a difficult enough day for what they did to him,"
Gotlin said, declining to comment further.

Bail was set for Arabov at $100,000, which the Russian immigrant
immediately paid.

Arabov, 41, who first came to fame in the mid-1990s as hip-hop and
R&B artists started sporting his gem-encrusted pieces, was arrested
at 8:30 a.m. on a warrant issued in Detroit by federal authorities.

Authorities have charged him with conspiring with others to launder
money in connection with a jewelry business.

Drug Enforcement Administration spokeswoman Erin Mulvey said the
arrest was at Arabov's midtown Manhattan store.

Paul Wilmot, a spokesman for Jacob & Co., said the arrest was "the
result of an unfortunate misunderstanding that we believe will be
straightened out in the next several weeks."

Arabov was named in an indictment charging that he and others broke
federal drug laws, including conspiracy to distribute more than 1,000
pounds of cocaine and laundering about $270 million, Detroit U.S.
Attorney Stephen J. Murphy announced yesterday.

Federal authorities say those indicted are connected to a drug
organization called the "Black Mafia Family." The gang dealt cocaine
in the Detroit area beginning in the early 1990s, extending across the country.

Between October 1997 and June 2005, authorities said they seized
about $5 million in cash from the gang, which used the drug money to
purchase and lease luxury vehicles and buy real estate and jewelry.