Jeweler to celebrities sentenced to 2 1/2 years

BY DAVID :[]ASHENFELTER • FREE PRESS STAFF WRITER • June 24, 2008

Celebrity Manhattan jeweler Jacob Arabov was sentenced to 2-1/2 years in prison and fined $50,000 today in federal court in Detroit for lying to federal agents about the ownership of jewelry seized from a major cocaine trafficker.

Arabov, 42, who pleaded guilty in October, lied about the ownership of $5 million worth of jewelry seized from drug suspect Terry Flenory and his associates in the “Black Mafia Family,” was facing a possible prison sentence of 37 to 46 months. But U.S. District Judge Avern :[]Cohn gave him 30 months in light of his charitable deeds and gave him until Jan. 15 to report to prison.

The jeweler told agents he had loaned rather than sold the items to Flenory to help Flenory get the jewelry back. Flenory and his brother, Demetrius Flenory, both former Detroiters, are among 63 people indicated since in 2005 in the case. It’s unclear why Arabov lied for Flenory. The brothers pleaded guilty and are awaiting sentencing.

"I feel ashamed that I broke the law of this country that’s been so good to me and my family,’ Arabov told Cohn.

Arabov, a Jewish refugee from Uzbekistan who came to the United States with his parents as a teenager, entered the jewelry trade and eventually opened Jacob and Co., a prestigious Manhattan jewelry store. Its clients included Elton John, hip hop stars and other entertainment and fashion celebrities.

Arabov’s plea agreement doesn’t require him to cooperate against other defendants in the case, but he agreed to forfeit $2 million to the government, which he paid today. One of his lawyers said his business would continue to operate in his absence.

Assistant U.S. Attorneys Dawn Ison and Michael :[]Leibson said they were satisfied with the sentence.

The case was investigated by the Drug Enforcement Administration and IRS Criminal Investigation.

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