Jacob 'The Jeweler' Arabo Accused of $3 Million Fraud in Luxury Pen Partnership
Jacob Arabo, the renowned jeweler known as "Jacob the Jeweler" to hip-hop royalty and professional athletes, is facing serious allegations of defrauding his business partner out of nearly $3 million. According to exclusive court documents obtained by The Independent, Arabo is accused of shortchanging Vadim Lampert, the creator of a $12,000 'Godfather'-themed luxury pen, on substantial commissions and royalties.
The Allegations and the Lawsuit
The complaint, filed in Manhattan County Supreme Court on February 6, details how Arabo's company, Jacob & Co., allegedly sold over $24 million worth of Lampert's exclusive 'Godfather' pens since 2022. However, Lampert claims that Arabo has failed to pay the full commissions and royalties owed, resulting in a shortfall of seven figures. Specifically, the lawsuit alleges that Arabo improperly used the high-end pens as "throw-ins" or deep discounts to favored clients, drastically reducing Lampert's rightful share by up to 80 percent.
"By treating the pen in such sales as a 'throw in' – i.e., adding the pen to the deal ostensibly for free or at a significant discount to sweeten the offer and close the sale – JacobCo failed to pay the full amount of the fees, commissions, and royalties owed to Garnet on these sales," the complaint states. Instead of the full $1,200 commission per pen, Lampert's company, Garnet Trade, Inc., reportedly received only $250 per pen on these transactions.
Background of the Dispute
The partnership between Arabo and Lampert began in September 2020, when Arabo solicited Lampert to sell his premium pens, watches, and other luxury items through the Jacob & Co. retail network. Lampert, who "implicitly trusted and respected" Arabo, developed close business ties and created product ideas, including the iconic 'Godfather' pen—a limited-edition item handcrafted in Italy by Montegrappa.
Lampert also brokered new distribution channels for Jacob & Co., negotiating deals with major retailers like Wempe in the U.S. and Europe, and Ethos Ltd., India's largest luxury watch boutique chain. Despite these contributions, the complaint alleges that Arabo has "never paid any of the royalties owed" for the 'Godfather' pen sales and unilaterally reduced Lampert's commissions on Ethos sales from 10 percent to 2 percent, eventually ceasing payments altogether in mid-2025.
Arabo's Controversial Past
Jacob Arabo, a Bukharan immigrant born Yakov Arabov, rose from a small booth in New York City's Diamond District to preside over a business with "well over" $150 million in annual revenue. His flashy designs have garnered a loyal following among celebrities, with name-checks in over 100 songs, including Kanye West's "Diamonds from Sierra Leone." However, his career has been marred by legal issues, including a 30-month prison stint for obstructing a federal drug investigation in 2006-2007, and being named as a co-defendant in a 2024 lawsuit against Sean "Diddy" Combs.
Legal Demands and Response
Lampert is seeking restitution of "not less than $2.7 million," along with pre-judgment interest, attorneys' fees, and other damages. The complaint accuses Arabo of "intentionally circumvented" their agreement and demands a full accounting of sales related to the 'Godfather' pens and deals with Wempe and Ethos. Arabo has not responded to requests for comment, while Lampert's attorney, Michael Paul Bowen, declined to comment on the ongoing case. Arabo now has approximately three weeks to formally respond to the allegations in court.
