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Resolution proposed in fake Indian art prosecution

SANTA FE – A federal court is considering a proposed plea agreement in an alleged counterfeiting scheme that passed off crafts made in the Philippines as the work of Native American artisans.

A video of the court hearing on the agreement was scheduled Wednesday from U.S. District Court in Albuquerque that may resolve charges against defendants including Jawad Khalaf and Nashat Khalaf.

The defendants have previously denied accusations that they violated the Indian Arts and Crafts Act. Prosecutors say they oversaw companies based in Albuquerque and Gallup that sold mass-produced jewelry and crafts from the Philippines fraudulently as the more valuable work of Native American artisans.

The case stems from a sweeping international investigation.