Gibson Guitar Settles on Lacey Violation Charges

By Karen M. Koenig | 08/06/2012 11:46:00 AM

 

Gibson Nighthawk Studio guitar torrified maple WASHINGTON - Gibson Guitar Corp. will not face prosecution for violating the Lacey Act and has instead entered into a criminal enforcement agreement with the United States. The guitar maker has also agreed to pay a $300,000 fine.

The agreement was announced Aug. 6 by Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division, Jerry Martin, U.S. Attorney for the Middle District of Tennessee and Dan Ashe, Director of the Department of the Interior’s U.S. Fish & Wildlife Service. Gibson also agrees to "commit no future violations of the law, including Lacey Act violations."

Gibson Guitar was charged with illegally purchasing and importing ebony wood from Madagascar as well as rosewood and ebony from India. Gibson's plants were raided in November 2009 and more recently in August 2011, the latter setting off public outcry for and against amending the Lacey Act.

As part of the agreement the company now admits it, among other things, it knowingly purchased four shipments of fingerboard blanks made from Madagascar ebony between October 2008 and September 2009, which was a direct violation of Madagascar's ban on the unfinished wood, in place since 2006. 

According to the Department of Justice, Gibson will pay a fine of $300,000, plus an additional "community service payment of $50,000 to the National Fish and Wildlife Foundation to promote the conservation, identification and propagation of protected tree species used in the musical instrument industry and the forests where those species are found." Gibson also agreed to strengthen its environmental compliance policy, and to withdraw all claims to the wood seized in the earlier raids, including the Madagascar ebony.

“As a result of this investigation and criminal enforcement agreement, 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,” Assistant Attorney General Moreno said in a statement. “Gibson has ceased acquisitions of wood species from Madagascar and recognizes its duty under the U.S. Lacey Act to guard against the acquisition of wood of illegal origin by verifying the circumstances of its harvest and export, which is good for American business and American consumers.”

"This criminal enforcement agreement goes a long way in demonstrating the government’s commitment to protecting the world’s natural resources. The agreement is fair and just in that it assesses serious penalties for Gibson’s behavior while allowing Gibson to continue to focus on the business of making guitars,” U.S. Attorney Martin also said in the statement.

Saying the Lacey Act helps ensure a "level playing field" for those in forest and wood products industries, U.S. Fish and Wildlife Service Director Ashe added, “We’re pleased that Gibson Guitar Corp. has recognized its duties under the Lacey Act to guard against the acquisition of wood of illegal origin from threatened forests and has taken responsibility for actions that may have contributed to the unlawful export and exploitation of wood from some of the world’s most threatened forests.”

 

Update:

Gibson Guitar CEO Speaks Out on Lacey Settlement

 

Background on the Lacey Act/Gibson Guitar controversy:

No RELIEF: Lacey Vote Cancelled

RELIEF Vote Could Bring Closure to Lacey Act Controversy (blog July 2012)

Lacey Act Amendment Under Vote by House (June 2012)

Lacey Act Battle Heats Up on the Hill (May 2012)

Musicians, Environmental Groups in Tune to Stop Illegal Logging (Jan 2012)

U.S. Reps Call for Lacey Act RELIEF

Battle Lines Drawn for Amending Lacey Act (blog Nov. 2011)

Wood Industry Groups Rally Support for Lacey (Sep. 2011)

Gibson Guitar Raid: The Lacey Act Run Amok (blog Sept. 2011)

Gibson Guitar Petitions Obama to End Investigation (Sept. 2011)

Amended Lacey Act Enforcement Begins Next Phase (April 2010)

Illegal Logging Bill Passes (July 2008)


Prev 1 2 Next All

 

 

RELATED ARTICLES

 

SHARE THIS

ABOUT THE AUTHOR: Karen Koenig

Karen M. Koenig has more than 25 years of experience in the woodworking industry, including visits to wood products manufacturing facilities throughout North America, Europe and Asia. As Editor-in-Chief of Wood & Wood Products, Karen’s primary responsibilities include spearheading the writing, editing and coordinating of the editorial content of the publication, along with the Red Book resource guide and the Red Book online source and supply directory (RedBookOnline.com). She is also a frequent contributor to other Woodworking Network online and print media.

 


Comments (9) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Dan H    
Report Abuse
PA  |  August, 06, 2012 at 03:19 PM

I guess it is less than coincidental that Gibson agreed to this plea only after Congress failed to act on changes to the Lacey Act. Regardless of whether or not this is the right decision for what Gibson did or did not do, it does nothing to correct the things within the Lacey Act that makes the ownership of certain goods illegal regardless of the purchaser’s intent. Owning a Gibson guitar that contains fret boards made of protected materials still makes the buyer a criminal even if he didn’t know the origin of the wood.
Everyone was behind Gibson for taking a stand. I even remember seeing the video of the Gibson owner vowing to fight until the bitter end, this "invasion" of a private company by gun wielding ATF agents bent on making a statement. I guess if a big manufacturer like Gibson can’t stop the intrusion an overzealous Government agency, than us little guys don’t stand a chance. I really hoped that Gibson would have done all it said it would do to fight this until the bitter end. Are we to believe now that the statements made before by Gibson are now untrue?

Vernon Graff    
Oklahoma  |  August, 06, 2012 at 04:08 PM

Government Regulations ! The end of all manufacturing in the United States. Just say good by to more jobs and be sure to thank your liberal congress and President in November. Oh and be sure to remember that the cost of these fines will be transfered to your next Guitar purchase.

Erik Autor    
Report Abuse
August, 06, 2012 at 04:37 PM

While this settlement appears to satisfy the parties involved in this specific case, it still does not address the fundamental problems of the Lacey Act amendments.
Retailers – by and large - support the environmental objectives of Lacey however this settlement vindicates retailers' arguments that the Lacey Act is being misapplied to foreign laws and regulations that have no relation to its noble environmental objectives.
Today's action underscores the need to address the underlying problems of the Lacey Act, and demonstrates the need for a legislative remedy.

Statement from Erik Autor, National Retail Federation vice president, International Trade Counsel, via e-mail

Dan H    
Report Abuse
PA  |  August, 07, 2012 at 07:04 AM

Erik,
I am not sure you're correct in saying that, "this law is being misapplied to foreign laws." That is exactly what this law was meant to do. It strips the United States of its Sovereignty and requires us to enforce the laws of another country within our borders. It is exactly what this administration wants us to do with our 2nd Amendment gun rights. This Administration said it would do all it could to require us to adhere to a small arms treaty in the UN right now that would take those 2nd Amendment rights away.
The Lacey Act is just another example of us losing our rights to the ideals of those who think they know better. When will we say enough is enough?

Adam Grant    
Report Abuse
August, 07, 2012 at 11:10 AM

This agreement closes an important chapter on the first major investigation and by far the most publicized cases under the 2008 amendments to the U.S. Lacey Act. The decision demonstrates that the Lacey Act has teeth. It shows that the law can be enacted with serious, but balanced penalties for violations.
Fair enforcement of the Lacey Act, the world's first ban on the importation of illegally sourced wood, is important to ensure that the wood comes into the U.S. from legal sources. We are hopeful that this case will provide incentive to other wood product providers - and their suppliers - to engage in legal purchasing of wood and help protect endangered forests.

Statement from Adam Grant, senior associate, World Resources Institute, via e-mail

John Costin    
Report Abuse
Maine  |  August, 08, 2012 at 12:56 PM

Could we please see replays of Gibson's CEO telling a press conference that the wood in question was harvested in compliance with all relevant environmental regs and that the seizures were politically motivated. And while we're at it, how about re-running Woodworking Network's Rich Christianson's unquestioning support of the statement. It looks like Gibson has "remembered" that they forgot to check the law before they bought the wood. As it originally appeared, Gib got caught with their hands in the cookie jar and went on the offensive.

I have to disagree with the other poster who says "everyone" supported Gibson. As a woodworker and musician I did not and many, many others from both camps did not. This isn't about US sovereignty. We make and enforce our own laws about our own resources. Lacey is about making sure the environmental laws of other countries are followed even if those countries don't have the ability to enforce them. Most of us don't want other countries tolerating, say, production of drugs that wind up in the US, or sheltering of US money that should be taxed in this country. This is the same principle.

Gibson thought that they were above those laws. That's bad for the environment, bad for the Rule of Law, bad for clean government in Third World countries. I'm glad Gib got spanked and glad that Lacey didn't get amended. Just because you have the money or influence to pay off an official in another country doesn't mean you should be able to buy poached resources. Other instrument makers play by the rules and stay in business. Gibson can, too.

Anne Buckley    
Report Abuse
Ireland  |  August, 09, 2012 at 06:24 AM

We are a small company selling guitars (Freyaguitars.com) and Gibson got very heavyhanded and threatening with us due to a particular guitar we were selling without even giving us a chance to discuss/rectify what was a tiny similarity.
I have to say the fine is justified.

Rich Christianson    
Report Abuse
Lincolnshire, IL  |  August, 09, 2012 at 10:55 AM

John, azpreciate the comments. I'm not sure how you are under the impression that I have had "unquestioning support" of Gibson CEO Harry Juskiewicz. The following paragraph is from my September 16, 2011 blog, a month after the second round of raids of the Gibson plants.

"Juszkiewizc has made numerous public appearances and interviews declaring Gibson's innocence and demanding that the investigations be dropped and his company's property be returned. While I can’t say whether or not Gibson did wrong in either or both cases, it is important to note that while the government is holding wood, components, products and computer hard drives valued at hundreds of thousands of dollars, no charges have yet to be filed in either case."

John Costin    
Report Abuse
Maine  |  August, 10, 2012 at 08:59 AM

Rich, I don't have the time to go back and pull quotes from your postings at the time, but the editorial position of WN was quite clear -- you and Karen worked the "jackbooted thugs" take on this story from the beginning. Even the quote above reveals it. You use a tone of outrage that law enforcement officials would actually seize evidence in a criminal investigation. Like the other allies in the media that Gib got working on this (Mike Molenda at Guitar Player mag wrote what had to be one of the most mindless editorials I've ever written and he got nailed for it in his own magazine), you went for the argument that Gibson should somehow be different from every other person or entity that is suspected of a crime and becomes the target of an investigation.

Should suspected drug smugglers be given back their drugs to sell on the street while the government gets their case together?

Juskiewicz tried to make this a story about overzealous government regulation and political payback -- just the story that certain strategists in certain political organizations have been trying to put out. It would not surprise me if we learn that Gib got their assistance in framing the issue.

But it was always a simple question: were the fingerboard blanks in question thicker than Indian law allows? India has a law; we have a law that says you have to follow the Indian law; we have a responsibility to enforce our laws. It was really a question that could be answered with a tape measure. And it appears that someone got out the tape measure.

It's a good thing the fingerboard blanks were still around when they got it out.


© Copyright
Vance Publishing Corporation
All rights reserved.

Woodworking Network
About Us
Contact Us
Advertise
Ad Upload
Our Communities
WoodworkingNetwork.com
Wood & Wood Products
Custom Woodworking Business
Red Book
Closets Daily
Vance Publishing
CWB List Rental
W&WP List Rental
Terms of Use
Privacy Policy
VancePublishing.com
Site map
Feedback Form
Leads to Insight