Quantcast

Lumber Liquidators Sentenced to $13.2 Million for Smuggling Illegal Wood Into the U.S.

Virginia-based company Lumber Liquidators was sentenced today to $13.2 million in fines and forfeitures for importing illegal wood and submitting false declarations under the Lacey Act, a conservation law that makes it a crime to import plants and animals taken in violation of state and foreign law. In addition, the company has been placed on a five-year probation, during which it must implement a strict environmental compliance plan.

Lumber Liquidators had imported flooring manufactured in China, made from wood that was illegally harvested in the forests of the Russian Far East, the habitat of the world’s last remaining wild Siberian tigers.

In October 2015, after a two-year investigation by the Department of Justice (DOJ) and U.S. Fish & Wildlife Service, the flooring retailer pleaded guilty to smuggling illegal wood, including one criminal felony of entry of goods by means of false statements and four misdemeanor counts of violating the Lacey Act.

Lumber Liquidators had imported flooring manufactured in China, made from wood that was illegally harvested in the forests of the Russian Far East, the habitat of the world’s last remaining wild Siberian tigers.

Environmental Investigation Agency (EIA) first documented Lumber Liquidators’ illegal activities in its 2013 report, Liquidating the Forests. Posing as timber buyers, EIA investigators went undercover to expose the illegal timber harvesting and trade in the Russian Far East and traced the wood through China to a company that admitted to illegal logging and paying bribes. The EIA investigation revealed that Lumber Liquidators was the single biggest trading partner of this Chinese company. The subsequent investigation by the DOJ found that Lumber Liquidators committed systemic fraud and sourced illegal timber not only from the Russian Far East but also from Burma.

“This historic criminal sentence against a major U.S. company in relation to the Lacey Act is setting an important precedent: Illegal wood is no longer tolerated in the U.S.,” EIA Executive Director Alexander von Bismarck said. “U.S. consumers need to be protected from unknowingly supporting organized crime and the destruction of the world’s last virgin forests.”

The penalties for Lumber Liquidators’ crimes include $7.8 million in criminal fines, $1.23 million Community Service payments, $969,175 in forfeited proceeds and more than $3.15 million in cash through a related civil forfeiture. In order to put in place the mandatory environmental compliance plan, under which all wood imports need to be verified back to the source of harvesting, the company will have to fundamentally transform its sourcing practices and submit itself to government-approved audits.

“The real cost to the company will come from having to forego cheap, stolen wood in its supply chain while the Department of Justice looks over its shoulder,” von Bismarck said. “This case sets an important example for the rest of the industry, the business model of buying cheap wood from shady sources doesn’t pay anymore.”

YOU MIGHT ALSO LIKE

Huge Victory for Environmentalists: Offshore Fracking Moratorium Now in Effect Off California’s Coast

The Inside Story of How a University Professor Quietly Collaborated With Monsanto

Michael Moore: 10 Things They Won’t Tell You About the Flint Water Tragedy, But I Will

Judge Says Lawsuit Can Move Forward for Lucky the Elephant Who Was Captured From the Wild 53 Years Ago

EcoWatch Daily Newsletter

Wesley Martinez Da Costa / EyeEm / Getty Images

By David R. Montgomery

Would it sound too good to be true if I was to say that there was a simple, profitable and underused agricultural method to help feed everybody, cool the planet, and revitalize rural America? I used to think so, until I started visiting farmers who are restoring fertility to their land, stashing a lot of carbon in their soil, and returning healthy profitability to family farms. Now I've come to see how restoring soil health would prove as good for farmers and rural economies as it would for the environment.

Read More Show Less
skaman306 / Moment / Getty Images

By Jillian Kubala, MS, RD

Radish (Raphanus sativus) is a cruciferous vegetable that originated in Asia and Europe (1Trusted Source).

Read More Show Less
Sponsored
Tinnakorn Jorruang / iStock / Getty Images

By Dan Nosowitz

The budding research on cannabidiol, or CBD, attracts a great deal of interest in the agricultural field.

Read More Show Less
Oksana Khodakovskaia / iStock / Getty Images

By Jillian Kubala, MS, RD

The loquat (Eriobotrya japonica) is a tree native to China that's prized for its sweet, citrus-like fruit.

Read More Show Less

The Centers for Disease Control (CDC) released new numbers that show vaping-related lung illnesses are continuing to grow across the country, as the number of fatalities has climbed to 33 and hospitalizations have reached 1,479 cases, according to a CDC update.

Read More Show Less
Sponsored
During the summer, the Arctic tundra is usually a thriving habitat for mammals such as the Arctic fox. Education Images / Universal Images Group via Getty Images

Reports of extreme snowfall in the Arctic might seem encouraging, given that the region is rapidly warming due to human-driven climate change. According to a new study, however, the snow could actually pose a major threat to the normal reproductive cycles of Arctic wildlife.

Read More Show Less
Vegan rice and garbanzo beans meals. Ella Olsson / Pexels

By Alina Petre, MS, RD (CA)

One common concern about vegan diets is whether they provide your body with all the vitamins and minerals it needs.

Many claim that a whole-food, plant-based diet easily meets all the daily nutrient requirements.

Read More Show Less
A fracking well looms over a residential area of Liberty, Colorado on Aug. 19. WildEarth Guardians / Flickr

A new multiyear study found that people living or working within 2,000 feet, or nearly half a mile, of a hydraulic fracturing (fracking) drill site may be at a heightened risk of exposure to benzene and other toxic chemicals, according to research released Thursday by the Colorado Department of Public Health and Environment (CDPHE)

Read More Show Less