Rocks, Paper, Rocks

In June 2006, Jacob “the Jeweler” Arabov was arrested and accused of taking part in a conspiracy to launder some $270 million in illicit drug profits.  The large-scale multi-state investigation led to dozens of indictments and the seizure of millions in cash, jewelry, cars, and residences.  Oh, a ton of cocaine (literally).  According to the government, Arabov wasn’t content with icing up the wrists, necks, and earlobes of athletes, rappers, and Rudy Giuliani, but decided that his client base needed to include notorious drug traffickers in both New Jersey and Michigan.  The King of Bling did not cooperate with the New Jersey investigation until he was indicted pursuant to the Michigan investigation.  The government had a number of gang member witnesses who said that Jacob had multiple dealings with heavyweight drug dealers, selling them custom-made jewelry and taking millions of dollars in payment while either not creating or falsifying the appropriate documents.  Essentially, what Jacob was accused of doing is knowingly helping some brutal crack-dealing criminals convert the fruits of slingin’ rocks from cash into blingin’ rocks, and then lying about it and trying to cover it up.  When Jacob was arrested in 2006, his dirty urine betrayed the cocaine in his body. 

Liar Liar!

Ultimately, as part of a plea bargain where the New Jersey investigation of Jacob was suspended, Jacob pled guilty in 2008 to giving false statements and falsifying records.   There are both federal and state versions of these statutes, in the context of criminal investigations and routine interactions that involve the government, such as paying taxes and bidding on government contracts.  For example, under 18 USC § 1001, a defendant can make knowingly false statements “in any matter of the executive, legislative, or judicial branch of the Government of the United States” by representing materially false facts, by concealing materially true facts, or by creating or using writings/documents that contain materially false statements or entries.  It’s a similar offense to perjury, which occurs in the context of knowingly false sworn material statements made orally or in writing during a trial or legal proceeding.  The underlying point is really the same: if a person knowingly lies to or conceals the truth from the government, that dishonesty on its own may constitute a criminal offense.  Jacob was sentenced to thirty months in federal prison, after getting seven months knocked off due to his substantial charitable involvement.  He also had to forfeit $2 million to the US Government and was fined $50,000.  So tell the truth – cops and prosecutors are pretty damn good at calling folks on their bullsh*t.  By the way, that’s an entirely different thing from exercising your lawful constitutional rights – if you’ve been accused of a crime, you need to lawyer up.  Live.  Dot com.  A safer bet: just don’t commit crimes in the first place. 

There’s More to the Story

Arabov got off fairly light.  The conspiracy to launder charges, which were dropped, but for which the Government had solid evidence, could have earned the Jeweler 20 years in prison.  It is fairly common for prosecutors to use the threat of more serious charges to encourage defendants to guilty pleas for lesser offenses. But here’s what’s most disturbing about the whole affair: Jacob’s Michigan business partners, the Black Mafia Family (“BMF”).  This violent gang started in the 1980s by dealing crack cocaine in Detroit, and then rapidly spread into Atlanta and Los Angeles, but primarily in the distribution capacity.  BMF expanded into the “music” promotion business, using it as a front to launder money and taking advantage of the bling obsession that has, in my opinion, poisoned hip-hop.  While the BMF successfully promoted itself through YouTube videos and I-75 billboards boldly declaring that “The World is BMF’s,” what really drew the attention of investigators was the brutal violence.  There are still outstanding murder charges for several BMFers. 

Capitalism at its Finest

Maybe Jacob never knew just how bad a crew he was involved with.  Maybe he found out later and was too scared to end the relationship.  The fact remains that he knowingly helped some very dangerous criminals hide their violent, illegal activity.  Either way, he broke the law from the beginning of his relationship with BMF, all in the name of money.  Most people are appalled by the devastation caused by crack in our communities.  Some people exploit the crack epidemic as a money-making venture.  Jacob the Jeweler helped them cover up their profits.  I wonder if it will still be fashionable to buy conflict ice from him or rhyme about him in rap songs.  If so, what does that say about our society?