THE jeweller to the stars known as New York’s “King of Bling” found himself wearing a pair of handcuffs as bracelets after being charged with money laundering for a cocaine gang.

Yakov Arabov, who counts Elton John, Madonna and the Beckhams among his clients, was arrested at his East 57th Street shop on Thursday and appeared briefly in court before being released on $100,000 bail (£54,000), which he paid immediately.

The Uzbek immigrant has become a celebrated figure in hip-hop culture as “Jacob the Jeweller” since R&B singer Faith Evans introduced him to her husband, Notorious B.I.G., in the 1990s.

He made his name with the extravagance known in the rap world as “bling bling” — a term coined by the New Orleans rappers Cash Money Millionaires in the late 1990s — that came to prominence as the title of a song by Cash Money artist BG.

Portraying himself as the modern Fabergé, Mr Arabov often forsakes gold and silver to work in even more precious platinum, and once covered a Rolls-Royce Spirit of Ecstasy emblem in diamonds.

His fame has spread as rappers have named him in “shout-outs” in their songs — 15 in 2005 alone. His customers include such stars as Sean “Diddy” Combs, Lil’ Kim, and Jay-Z.

Kanye West launched a line of religious-themed jewellery with him and mentioned him in his song Diamonds from Sierra Leone, asking: “These ain’t conflict diamonds, is they Jacob? Don’t lie to me man.” Mr Arabov donated the most valuable item for auction at the Beckhams’ “Full Length and Fabulous” party last month — a white-gold watch with 28 carats of diamonds and rubies in the shape of a world map.

The jeweller was arrested for allegedly laundering profits for a Detroit-based drug gang called the Black Mafia Family, which is accused of distributing 476kg of cocaine (1,050oz).

Prosecutors charge that Mr Arabov laundered some of the gang’s $270 million (£146 million) in drug money by turning cash into jewellery without reporting the transactions. “It was . . . part of the unlawful conspiracy that Jacob [Yakov] Arabov facilitated the purchase of jewellery utilising the drug profits,” the indictment said.

A spokesman for Jacob & Co, said that the arrest was “the result of an unfortunate misunderstanding that we believe will be straightened out in the next several weeks”.

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