JAILHOUSE BLUES: Stylist Derek Khan has landed behind bars for borrowing expensive jewelry and watches and selling the merchandise off to local pawnbrokers for cash. Sources told WWD that the well-known celebrity dresser in the last few months took jewelry and watches from companies including Graff, Harry Winston, Vivid, Piaget, William Goldberg and other high-end jewelers, and never returned it. He was arrested last Wednesday and charged with grand larceny, and is currently imprisoned in New York, a police spokeswoman said. He is scheduled to appear in court on Tuesday.

Khan, who has worked with Lil’ Kim, Tyra Banks, Mary J. Blige and Aretha Franklin, among others, would tell the jewelry firms he needed merchandise for photo shoots for magazines like Vanity Fair and to dress various celebs, and then gave conflicting stories to different people in each company about where the jewelry was, even claiming to at least one firm it was stuck in Barbados. One source said Khan had a safe in Trump Tower where he would house the jewelry before pawning it off. The value of the jewelry he fingered was in excess of $1.5 million, according to court papers filed with the City of New York. Khan, who is 45, turned himself in to the police last week, after a group of jewelers got together and notified the authorities.

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