Crime

4 Sentenced, 1 Sought in Case Involving Fake Native American Jewelry

CrimeSep 01, 2020

4 Sentenced, 1 Sought in Case Involving Fake Native American Jewelry

Two men and two businesses were sentenced in federal court in Albuquerque last week as part of “Operation Al Zuni.”

20200901_Operation_Al_Zuni_canteen.jpg
This picture shows one of the miniature canteens made overseas but sold in the United States as an authentic piece of Native American jewelry. The photograph is part of the public record in the case.

Albuquerque, N.M.—Two individuals and two businesses charged in a massive investigation into counterfeit Native American arts and crafts, including jewelry, were sentenced in federal court in Albuquerque on Aug. 26.

According to the U.S. Attorney’s Office in New Mexico, 72-year-old Jawad Khalaf and his brother, 74-year-old Nashat Khalaf, received two years’ supervised release, while Jawad also must perform 100 hours of community service, for mispresenting goods as Native American-produced—in this case, miniature canteens—that were not made by Native Americans.

Both Jawad and Nashat appeared in person in court last week after pleading guilty via video conference in April, said Sean Sullivan, a spokesperson for the U.S. Attorney’s Office in Albuquerque.

Also sentenced last week were the Khalaf brothers’ businesses.

Jawad’s company, jewelry importer Sterling Islands Inc., was placed on probation for five years and sentenced to 50 hours of community service, while Al-Zuni Global Jewelers Inc.—Nashat’s wholesale Native American jewelry business in Gallup, New Mexico—also got five years’ probation and 20 hours of community service.

Collectively, the defendants will make a $300,000 donation to the Indian Arts and Crafts Board, a federal agency that promotes the economic development of Native Americans through their arts and crafts, and forfeit nearly $290,000 seized by investigators in the case, the U.S. Attorney’s Office said.

Sullivan confirmed the sentencings were part of “Operation Al Zuni,” a sweeping federal investigation of two networks that, federal investigators say, were making Native American arts and crafts in the Philippines, importing them into the United States and passing them off as Native American-made.

That is a violation of the Indian Arts and Crafts Act, a 1990 truth-in-advertising law prohibiting the display and/or sale of any goods—jewelry, rugs, baskets, etc.—in a manner that suggests they are Native American-produced, a Native American product, or the product of a specific individual or tribe if they are not.

Operation Al Zuni was the subject of an extensive report published by National Geographic in March 2018.

The story noted the flood of fakes on the market in the Southwest not only deprive Native Americans of income but, in the words of one Zuni jeweler, feel like a “very deep personal attack” for Native Americans who view arts and crafts as way to stay connected to their culture and history.

Jawad, Nashat, Sterling and Al-Zuni were originally charged in the case in February 2019, along with three other men.

Charges against two of the

men were dropped, Sullivan said, while another defendant, 49-year-old Taha Shawar of Breckenridge, Colorado, is still wanted by authorities.

In January, National Jeweler reported on guilty pleas entered in another case involving jewelry made in the Philippines but sold all over the U.S. as authentic Native American work.

Sullivan said that case was separate from Operation Al Zuni.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Young Diamantaires
SourcingApr 24, 2025
Young Diamantaires Transition to Nonprofit

The organization also announced its board of directors.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

gia-topimage 0325.jpg
Brought to you by
A Brilliant Future Is Here

Get online education from GIA experts.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

Athena Calderone x John Hardy Collection
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired Collection

Interior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.

Movado Connect 2.0 watches
FinancialsApr 17, 2025
Movado Group to Increase Prices to Offset Tariffs Impact

During a call about its full-year results, CEO Efraim Grinberg discussed how the company is approaching the uncertainty surrounding tariffs.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy