ALBUQUERQUE, N.M. – A landmark federal court ruling has brought justice to the purveyors of fake Native American-style goods. Jawad Khalaf, 72, and Nashat Khalaf, 73, from Albuquerque and Gallup, respectively, were sentenced along with their companies, Sterling Islands Inc. and Al-Zuni Global Jewelry, Inc., for misrepresenting Indian-produced goods and services in a scheme that defrauded customers out of hundreds of thousands.
The duo and their businesses faced charges after importing Native American-style jewelry from the Philippines and selling it as authentic to unsuspecting consumers across the United States. The Khalaf brothers were sentenced to two years’ supervised release, with Jawad also required to perform 100 hours of community service. Their companies, Sterling Islands Inc. and Al-Zuni Global Jewelers, were each sentenced to five years’ probation and 50/20 hours of community service.
In a resounding victory for Native American artists and artisans, the defendants were ordered to pay $300,000 to the Indian Arts and Crafts Board and forfeit their interests in $288,738.94 seized during the investigation.
The case began with an indictment returned on December 19, 2018, charging the Khalafs, along with three other individuals, for conspiracy, smuggling goods into the U.S., and misrepresentation of Indian-produced goods. The defendants admitted offering for sale miniature canteens, not produced by Native Americans, at Al-Zuni Global Jewelry in Gallup.
U.S. Attorney John C. Anderson praised the hard work of investigators and prosecutors, noting that this was a victory for Native American artists and artisans. Assistant Director Edward Grace of the Office of Law Enforcement echoed these sentiments, thanking special agents and federal partners for their dedication to justice.
Meridith Stanton, Director of the Indian Arts and Crafts Board, emphasized the importance of authenticating art purchased in New Mexico and protecting against unfair competition from counterfeit goods. The Board commended the extraordinary efforts of the U.S. Attorney’s Office and the U.S. Fish and Wildlife Service in combating the sale of counterfeit Native American art.
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Key Facts
- State: New Mexico
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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