Two Defendants Sentenced for Fraudulent Sale of Native American Goods

Two defendants who previously pled guilty to the misrepresentation of Native American-style goods and services in an amount greater than $1,000 were sentenced in federal court, according to a Department of Justice press release dated August 27, 2020.

According to the Albuquerque Journal, Jawad Khalaf of Albuquerque, New Mexico, was sentenced to two years’ supervised release and 150 hours of community service and Nashat Khalaf of Gallup, New Mexico was sentenced to two years’ supervised release and 20 hours of community service. The defendants will also pay $300,000 to the Indian Arts and Crafts Board and forfeit $288,738.94 seized by investigators in the case.

The aforementioned press release details that companies owned by the defendants, Sterling Islands, Inc. and Al-Zuni Global Jewelry, Inc., knowingly and willingly sold artifacts and artwork made in the Philippines under the pretense that they were of Native American origin. Both companies are on probation for 5 years.

For example, the defendants admitted that they sold miniature canteens that were not actually Indian-produced, but could have been mistaken as authentic canteens. Not only did they defraud American consumers and Native American artisans, but they also conspired to smuggle these goods into the United States and misrepresented Indian-American goods for profit.

The use of Native American heritage for profit and cultural theft is not taken lightly in New Mexico. This multi-agency effort, which has been ongoing since at least 2015, was brought to fruition when defendants were finally sentenced for their crimes. In the release, John C. Anderson, U.S. Attorney for the District of New Mexico said of the sentencing, “It is the culmination of countless hours of diligent work and cooperation among our partnering law enforcement agencies on behalf of Native American artists and artisans. We stand ready to bring the power of the law to bear upon those seeking to profit from cultural theft.”

New Mexico, often referred to as the Land of Enchantment due to its vast array of Indian art and culture, relies heavily on Native American production of artifacts to sustain its economy, said Meridith Stanton, Director of the Indian Arts and Crafts Board (IACB), U.S. Department of the Interior.

IACB is responsible for enforcing the Indian Arts and Crafts Act which strives to prevent the counterfeit sale of such items and support the livelihoods of Indian Americans- many of whom rely on the sale of their craftwork to sustain themselves.

In the DOJ release, Director Stanton continued to discuss how crucial it is that American consumers trust the authenticity of the art they are purchasing. Native Americans should also be protected from unfair competition so they can preserve original Indian art and pass it down from generation to generation.

The Department of Game and Fish, another group who took part in this multi-jurisdictional prosecution, worked with state and federal law enforcement to bring the defendants to justice. In the same press release, New Mexico Department of Game and Fish director Michael Sloane said, “We take pride in both conserving wildlife and protecting the diverse cultures of New Mexico. We congratulate our partners on a job well done.”

An additional defendant, Taha Shawar of Breckenridge, Colorado, remains a fugitive.

The Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service led the investigation of this case with assistance from the Albuquerque Division of the FBI, Homeland Security Investigations, the Indian Arts and Crafts Board, the Drug Enforcement Administration, the U.S. Marshals Service, and the New Mexico Department of Game and Fish. Assistant U.S. Attorneys Jonathon M. Gerson, Sean J. Sullivan, Kristopher N. Houghton, and Stephen R. Kotz prosecuted the case.