Wikipedia:
“A folkloric explanation claims that mules or horses (nags) would have lights hung on their heads by nefarious wreckers in order to trick ships into running aground and then loot the ships of their valuables. The town’s emblem depicts one such equine accomplice from the tale.”
We had a semi go over the guardrails from Rt 40 here in Tijeras one time... filled with bags of baby carrots. The locals got them all. :)