SANTA FE, N.M. — An intensifying federal investigation into the sale of American Indian artifacts has cloaked the market in a fog of uncertainty.
Wealthy collectors are more cautious about buying artifacts for fear of criminal liability, and reputable dealers say they're working double time to prove their legitimacy after being lumped together with looters and gravediggers.
Amid grumbling about government meddling, the tension was evident last week at one of the nation's largest and longestrunning Indian artifact shows.
"I think a lot of people are just scared because there's a lot of misconception about whether this stuff is legal or illegal," said Jeff Hammond, a private collector and dealer who was displaying prehistoric pots at the 31st annual Whitehawk Antique Show.
Hundreds of prospective buyers crowded into the exhibit space to get a look at the artifacts, from a rare Sikyatki polychrome jar to bead-adorned moccasins, silver jewelry, painted animal hides and woven baskets.
While there was talk about the beauty and rarity of some items, the buzz was all about the federal crackdown on the trafficking of relics in the Four Corners region, an area rich in prehistoric archaeological sites and artifacts.
A two-year undercover investigation became public in June, with raids on homes and businesses throughout the region where Arizona, Utah, New Mexico and Colorado come together. More than 20 people were arrested and indicted oncharges of taking the goods illegally. Twenty-five people face felony charges - two of them have committed suicide.
On Tuesday, a New Mexico man indicted in the case pleaded innocent in federal court in Salt Lake City. David Waite, 61, of Albuquerque faces charges of trafficking, transporting stolen goods and theft for selling a cache of 24 knife points taken from federal lands in Utah.
The dealers at the show, many of whom have been collecting and selling Indian artifacts for more than two decades, said they were concerned about their reputations because of a growing public perception that anyone involved in the trade could be involved with the criminal element being targeted by federal agents.
"Are there people doing bad things? Yes. And I'm sure the court system will give them what they deserve," said Walter Knox, a dealer who runs an upscale gallery in Scottsdale, Ariz."But since this started, I'm still getting checked a lot, and it's getting kind of silly."
Every week, Knox said, he has to run someone out of his gallery for trying to sell him stolen pots.
"I post my rules so people know I'm not going to deal with anything shady," said Knox, a retired police officer.
The aisles of the exhibit hall were crowded with collectors on Tuesday, including business leaders and Santa Fe's elite. There were hugs and handshakes from the dealers for their regular customers, but rumors also were circulating about suspicious vans and undercover federal agents.
Knox shrugged it off, saying the caliber of dealers at the show is such that they have nothing to worry about.
"We're the ones who love this stuff, who clean it and care for it," he said. "That's what people are doing, preserving history. And there's a right way and a wrong way to do it."
Business, Pages 66 on 08/23/2009