Native American link in the Jesse Dunagan line

I am still searching for the Native American link in my husband to be's fathers line. He is the grandson of William Dunagan and Flora Ann May who were married in 1908 and divorced in 1911. Joe was told that his grandfather Dunagan was a horse thieving indian that got hung for stealing a horse. We have learned that this isn't true but we don't know where the native american link is. We think that the link is cherokee. Can anyone help?