Navajo Nation faces hurdles in recovering funds

FARMINGTON, N.M. (AP) – The Navajo Nation may have little recourse in seeking money from a Colorado man who is accused of spending millions of the nation’s funds for personal use.

Hak Ghun, of Durango, Colo., is accused of using corporate funds the Navajo Nation invested into his Shiprock company, Biochemical Decontamination Systems Manufacturing Inc.

Authorities allege Ghun spent more than $1 million between 2005 and 2007 and concealed his actions by filing false tax returns in the company’s name.

He pleaded not guilty on Tuesday to three federal counts of income tax evasion totaling $368,000 between 2005 and 2007.

LoRenzo Bates, chairman of the Navajo Nation Council’s budget and finance committee, said in the Farmington Daily Times that the Navajo Nation may have little legal standing to bring its own charges against Ghun.

“The federal government is going to take its money first,” Bates told the Farmington Daily Times. “If Hak has any money left over after that, then the nation can go after him.”

The Navajo Nation still faces jurisdictional hurdles, Bates said. The tribe has no jurisdiction over a non-American Indian, even if that person is on tribal land.

“The issue with that is not just getting Ghun back on the Navajo Nation,” Bates said. “He doesn’t have to comply with warrants issued from the nation.”

Ghun would have to be physically on the nation to face civil or criminal charges, but even if Navajo officers arrested him, they don’t have the authority to hold him.

The Navajo Nation is cooperating with the federal government in the investigation.

Navajo President Ben Shelly said the nation will do whatever it can to pursue charges against Ghun and get its investment back.

“We are exploring every option to our disposal right now,” Shelly said. “We are making every effort to ensure the Navajo people’s money is returned.”

Ghun is the former chief executive of the failed Biochemical Decontamination Systems Manufacturing Inc. of Shiprock.

The maximum penalty for conviction on each count is five years in prison and a $100,000 fine.

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Information from: The Daily Times, http://www.daily-times.com