Judge sentences two dealers of fraudulent Native American jewelry
A scam to import jewelry from the Philippines and sell it in the United States as authentic Native American jewelry has resulted in fines and other penalties for two New Mexico residents and their businesses, according to the U.S. Attorney’s Office in New Mexico.
Jawad Khalaf, 72, owner of Sterling Islands Inc., of Albuquerque, and Nashat Khalaf, 73, owner of Al-Zuni Global Jewelers, of Gallup, on Thursday were sentenced to pay $300,000 to the Indian Arts and Crafts Board and forfeit their interest in nearly $288,740 seized by investigators.
In addition, U.S. District Judge James O. Browning sentenced Jawad Khalaf to two years supervised release and 150 hours of community service, and Nashat Khalaf to two years supervised release and 20 hours of community service.
Separately, Sterling Islands Inc. and Al-Zuni Global Jewelers are subject to five years oversight by the U.S. Probation Office.
The defendants pleaded guilty in April to misrepresentation of Indian-produced goods and services in an amount greater than $1,000.
Another defendant, Taha Shawar, 49, owner of Bullion Jewelers in Breckenridge, Colorado, remains a fugitive.
The U.S. Fish and Wildlife Service led the investigation.
“We stand ready to bring the power of the law to bear upon those seeking to profit from cultural theft,” said John Anderson, U.S. Attorney for the District of New Mexico.
Meridith Stanton, director of the Indian Arts and Crafts Board, which is part of the U.S. Department of the Interior, said, “The Land of Enchantment’s identity and economy relies heavily on Indian art and culture.”
“Consumers must have confidence that the Indian art they are purchasing in New Mexico is authentic,” she said, and “Indian artists and economies must be protected from unfair competition.”
Assisting in the investigation were agents from the Albuquerque FBI office, Homeland Security, DEA, U.S. Marshals Service, the Indian Arts and Crafts Board and the New Mexico Department of Game and Fish.