Gibson Guitar entered into an agreement with the United States today resolving a criminal investigation into allegations that the company violated the Lacey Act first passed in 1900 (to protect rare bird feathers and hatters) by illegally purchasing and importing ebony wood from Madagascar and rosewood and ebony from India. Gibson previously maintained the wood was mislabeled overseas.
The government will not charge Nashville-based Gibson criminally if Gibson fully carries out the agreement, and commits no future violations of law, including Lacey Act violations.
The deal defers prosecution for criminal violations of the Lacey Act and requires Gibson to pay a penalty amount of $300,000. The agreement also calls for a community service payment of $50,000 to the National Fish and Wildlife Foundation to be used 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.
In directly related civil actions, Gibson will withdraw its claims to the wood seized in the course of the criminal investigation, including Madagascar ebony from shipments with a total invoice value of $261,844. Gibson purchased “fingerboard blanks,” consisting of sawn boards of Madagascar ebony, for use in manufacturing guitars.
Since May 2008, it has been illegal under the Lacey Act to import into the United States plants and plant products (including wood) that have been harvested and exported in violation of the laws of another country. While many automakers use exotic woods, none has apparently violated the act, and most automakers are quick to point out that they increasingly use sustainable materials.
“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 over-harvesting and conserve valuable wood species from Madagascar, a country which has been severely impacted by deforestation,” said Assistant Attorney General Ignacia S. Moreno.
