FARMINGTON — A Durango, Colo. man pleaded guilty Thursday to federal tax evasion after he was accused of stealing money from a failed business in Shiprock and eluding taxes. 

Hak Ghun, 62, will be sentenced to 12 to 18 months in prison and be required to pay $250,000 in restitution to the Internal Revenue Services as a condition of his plea agreement, The U.S. Attorneys Office in the District of New Mexico said in a news release. 

Ghun was the CEO of Biochemical Decontamination Systems Manufacturing Inc., in Shiprock and he was accused of using $2.2 million in loans the Navajo Nation provided the company on personal expenses, which included luxury cars, hotel stays and casino gambling.

It was not clear if Ghun will have to pay restitution to the Navajo Nation.