ICE, FWS Raid Lumber Liquidators Over Possible Wood Import Lacey Act Violations
Federal authorities raided the corporate offices of Lumber Liquidators as part of an apparent investigation into the company's wood imports, Lumber Liquidators said in a Sept. 27 press release. ICE and U.S. Fish and Wildlife Service (FWS) executed a sealed search warrant on Sept. 26 at the company's Toana and Richmond, Va., corporate offices, the company said. The raid was reportedly related to potential Lacey Act violations, though no complaint has been filed.
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The searches "relate to the importation of certain of the Company's wood flooring products," Lumber Liquidators said. "The Company takes its sourcing and compliance very seriously, and is cooperating with authorities to provide them with requested information." The search of the company's offices may relate to imports of wood originating in Russia and processed in China but entered as coming from a different country, according to a report from a local NBC station (here). ICE, FWS and Lumber Liquidators did not return requests for comment.
Lumber Liquidators "sources its products directly from approximately 110 domestic and international mills around the world," the company said. "As a result of the normal course of business, the Company is subject to a range of international and domestic regulations. Due to the scale of its international and domestic operations, Lumber Liquidators has policies and procedures in place for the sourcing, harvesting and manufacturing of its products designed to comply with federal and other regulations related to the importation of wood flooring products."
The search warrant indicates ICE obtained a detailed, convincing affidavit that concludes Lacey Act violations took place, said Marcus Asner, a lawyer with Arnold & Porter who has worked on Lacey Act matters both for the firm and as federal prosecutor. “When the authorities actually enforce in a case like this, they see a matter worth the expenditure of their limited resources,” said Asner. “They generally don’t go out there and do this without an affidavit that details some good stuff.”
The case remains in the investigative stage and observers should not have expected a complaint at this time, Asner added. If the violation is proved to be an inadvertent mistake, the illegally imported wood would simply be forfeited, said Asner. “If the company knew or an individual within the company knew that the wood was illegal, it could be a felony, which can lead to a sentence of up to five years in prison,” said Asner, adding that similar cases often are resolved through settlement.
The Environmental Investigation Agency, an environmental protection advocacy group, voiced support for the government's work in "responding to the catastrophic levels of illegal logging around the world and continues to lead the international effort to stop the trade in stolen wood." The Lacey Act "has already been credited with effectively transforming the marketplace, curbing associated illegal activity around the world and helping to combat climate change," said Alexander von Bismarck, the group's executive director, in a press release (here). "Companies need to ensure the products they sell are legal."