New York based jeweler Jacob Arabov, well known in the hip hop community as Jacob The Jeweler, will reportedly plead guilty next week to lying to federal agents .

Jacob was indicted in Detroit last year for allegedly helping the Black Mafia Family (BMF), an Atlanta based gang, launder over $270 million in drug money.  He plead not guilty to the charges.

Black Mafia Family was formed by Demetrius “Big Meech” Flenory and his brother Terry “Southwest T" Flenory”, who both hail from Detroit.

The gang was infamous in the Atlanta area for their lavish lifestyle and was well known in the hip-hop community for their alignment with rappers like Young Jeezy and Fabolous. The Flenorys were indicted and arrested on drug trafficking charges in 2005.

According to The Detroit Free Press, the U.S. Attorney's Office 'filed a so-called criminal information' against Jacob today (October 26) charging him with 'falsifying federal records and making false statements to agents'.

Benjamin Brafman, Jacob’s lawyer, said his client is an ‘honest citizen who used bad judgment in an attempt to conceal dealings with a small group of individuals’.

Brafman also added that Ja cob has accepted responsibility for his actions and hopes the judge will take his charitable efforts and business success into account during sentencing.

“I have always been blessed with good fortune and loving friends and family,” Jacob said in a statement. “.I realize I have made a terrible mistake and I am ready to accept the consequences of my actions… My desire is to do whatever I can to atone for my wrongdoings and move ahead with the great business I have built and the wonderful family that I love.”

If a U.S. district judge agrees  to the ‘criminal information filing’, Jacob would be sentenced next year and could face up to three years behind bars and a $2 million penalty.

Earlier this month, Black Mafia Family affiliate and rapper Blue DaVinci was indicted for participating in the distribution of multiple kilos of cocaine nationwide’

Bleu Davinci was the only artist on BMF’s record label, BMF Entertainment, and took over the label’s reigns after Big Meech was sent to jail. Feds believe that the record label was a front for BMF’s cocaine trafficking.