Celebrity jeweler Jacob Arabov, of New York’s Jacob & Co., has pleaded guilty to falsifying records and giving false statements to investigators looking into a multistate drug ring, the Associated Press reports. Arabov will serve up to 46 months in prison and pay a $2 million penalty, U.S. Attorney Stephen J. Murphy said in a news release. In return for the guilty plea, prosecutors agreed to drop money-laundering charges against him.

“I realize I have made a terrible mistake, and I accept the consequences of my actions,” Arabov said.

Arabov, 42, was arrested in June 2006 at his Manhattan jewelry shop. He was accused of conspiring to launder about $270 million in profits for a Detroit drug ring.