Gibson Settles Lawsuit in Exotic Guitar Wood Case

Tuesday, 07 Aug 2012 08:24 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Guitar maker, Gibson, has settled U.S. allegations that it illegally bought protected species’ wood for manufacturing instruments, ending a criminal probe and forfeiture proceedings in federal court in Tennessee.

Gibson, based in Nashville, will pay $350,000 in penalties and agreed to implement a compliance program. The company also will withdraw its claims to about $261,000 of ebony and rosewood from India and Madagascar seized during the investigation, according to a statement today by the U.S. Justice Department.

“Gibson has acknowledged that it failed to act on information that the Madagascar ebony it was purchasing may have violated laws intended to limit overharvesting and conserve valuable wood species from Madagascar, a country which has been severely impacted by deforestation,” Ignacia Moreno, head of the department’s environment and natural resources division, said in the statement.

A raid on the company by U.S. agents in August incensed tea party groups and Republican lawmakers such as House Speaker John Boehner, who called it an example of overreaching by big government.

Wearing bulletproof vests, agents from the Justice and Homeland Security Departments sent workers home and seized almost 100 guitars and boxes of raw materials, Chief Executive Officer Henry Juszkiewicz said in an interview last year.

The agents were investigating possible violations of the Lacey Act, enacted in 1900 to curb illicit trafficking in fish and wildlife. The law was expanded in 2008 to make it a crime to import plants and plant products taken illegally.

The so-called criminal enforcement agreement frees Gibson from criminal charges for violations of the Lacey Act as long as the company doesn’t violate the agreement over the next 18 months.

Ed James, a spokesman for Gibson, didn’t immediately respond to a phone call and an e-mail message seeking comment on the settlement.

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Joan Rivers in Medically Induced Coma After Cardiac Arrest: Report

Thursday, 28 Aug 2014 19:45 PM

Comic Joan Rivers was hospitalized in critical condition Thursday morning after she reportedly went into cardiac arrest  . . .

Another Flight Diverts in Reclined-Seat Flap

Thursday, 28 Aug 2014 19:21 PM

An outburst over a reclined seat led an American Airlines flight to divert to Boston, at least the second such incident  . . .

NFL to Ban 2nd-Time Domestic Violence Offenders

Thursday, 28 Aug 2014 16:18 PM

NFL players will be subject to a six-week suspension for a first domestic violence offense and banishment from the leagu . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved