DOJ Raids Gibson Guitars: Political Motive Uncovered

[travelinman67]

AG Holder alleges the ebony fingerboard wood Gibson imports from India needs to be "finished" by Indian workers before shipment, in compliance with a new Indian law.

This is raid number two...

...in 2009, Gibson was raided for importing ebony from Madagascar...

...in violation of a trade policy established by NGO "Rainforest Alliance".



http://news.yahoo.com/gibson-guitar-fig ... 24959.html

CHICAGO (Reuters) - Gibson Guitar's chief executive said on Thursday he would fight a federal investigation of the legendary guitar maker's wood imports after agents raided the company for the second time in two years.

Federal agents entered Gibson's facilities in Nashville and Memphis, Tennessee, on Wednesday, seizing wood imported from India, and workers were sent home.

In an affidavit, authorities indicated they are weighing charges against the company or its executives for illegally importing wood under a U.S. law barring importation of endangered plants and woods. The company has sued to recover its property.

"Gibson has complied with foreign laws and believes it is innocent of any wrong doing," Chief Executive Officer Henry Juszkiewicz said in a statement. "We will fight aggressively to prove our innocence."

Juszkiewicz said the company, which began more than a century ago and makes some of the world's most prized guitars, has worked with environmental groups such as the Rainforest Alliance to ensure its wood imports are from sustainable sources.

"(The government) has suggested that the use of wood from India that is not finished by Indian workers is illegal, not because of U.S. law, but because it is the Justice Department's interpretation of a law in India," Juszkiewicz said.

If the same wood from the same tree was finished by Indian workers, the material would be legal, he said.

In an affidavit, agent John Rayfield of the U.S. Fish and Wildlife Service said U.S. Customs agents in June detained a shipment of sawn ebony logs from India.

The paperwork accompanying the shipment identified it fraudulently as Indian ebony fingerboards for guitars and it did not say it was going to Gibson, the affidavit said.

In July, agents observed Indian ebony and rosewood delivered to a storage facility for Gibson, according to the affidavit, which asked permission to seize Gibson's business computers.

Gibson plants also were raided in 2009, when agents confiscated ebony imported from Madagascar.

Hundreds of billions of American investor's money vaporizes...and after 3 years, not a single banker/investment manager has been criminally charged...

...yet DOJ has resources to investigate and shut down one of America's century-old, internationally famous, premier musical instrument manufacturer over a technicality about where the fingerboard wood is finished.

Please.

Congress.

If anyone there is listening and cares...

...please initiate an investigation of the Department of Justice, AG Holder and President Obama.

The United States' Executive Branch has been infiltrated by criminals.

[∞∞∞]

I'm perfectly fine with the DOJ opening an investigation on Gibson if they're in violation of the Lacy Act, but I do agree that it's odd that the DOJ never charged bankers/investors on Wall Street.

[ASUG8]

At least the DOJ and Holder are attempting compliance with Indian laws.

[Ibanez]

At least the DOJ and Holder are attempting compliance with Indian laws.

Right?! How insane is this? I guess they aren't anymore important targets out there like Wall Street or Pay Day Lenders (predatory lending, IMO)

[Ibanez]

I've sent stronly worded letters to each of my senators and representatives.

[travelinman67]

I'm perfectly fine with the DOJ opening an investigation on Gibson if they're in violation of the Lacy Act, but I do agree that it's odd that the DOJ never charged bankers/investors on Wall Street.

They are not violating the Lacy Act. Importing of ebony and rosewood are legal.

[∞∞∞]

I'm perfectly fine with the DOJ opening an investigation on Gibson if they're in violation of the Lacy Act, but I do agree that it's odd that the DOJ never charged bankers/investors on Wall Street.

They are not violating the Lacy Act. Importing of ebony and rosewood are legal.

I know, but the act also covers how it's imported. Isn't that the issue here?

[grizzaholic]

It is a guitar company. No one cares

[travelinman67]

Turns out the CEO of Gibson is a big Republican donor...

...and their largest competitor's CEO is a big Democrat donor.

No Shit!

Chicago Politics moves to Pennsylvania Ave.



CEO of Gibson Guitar a Republican donor; Democrat competitor uses same wood
By Andrew Lawton - Fri Aug 26, 1:17 pm

http://landmarkreport.com/andrew/2011/0 ... can-donor/

On Thursday, the iconic Gibson Guitar Corporation issued a press release stating that government officials raided their Tennessee manufacturing facility over warrants concerning the legality of the importation of wood purchased from India that they use in their world famous guitars. The wood–which is certified and regulated by the Forest Stewardship Council–is not illegal, but rather subject to a domestic law in India frowns upon the processing of this wood by non-Indians. (Gibson uses American labor for the processing.)

Gibson’s press release claims that, while this incident marks the second raid of their facility in around two years, this is the first of the raids to cost the company time and resources, as they needed to shut down operations. It seems as though this was all for naught.

The release read:

The Federal Department of Justice in Washington, D.C. has suggested that the use of wood from India that is not finished by Indian workers is illegal, not because of U.S. law, but because it is the Justice Department’s interpretation of a law in India. (If the same wood from the same tree was finished by Indian workers, the material would be legal.) This action was taken without the support and consent of the government in India.

On August 24, 2011, around 8:45 a.m. CDT, agents for the federal government executed four search warrants on Gibson’s facilities in Nashville and Memphis and seized several pallets of wood, electronic files and guitars. Gibson had to cease its manufacturing operations and send workers home for the day, while armed agents executed the search warrants. Gibson has fully cooperated with the execution of the search warrants.

The fact that the government would issue warrants based on their interpretation of another country’s laws is laughable–and scary–in and of itself, but that they would demonize an American, non-unionized (coincidentally, I’m sure) company for something that isn’t even a crime (especially not in the American lawbooks) is a gross misjustice. Keep in mind that the Indian government itself wasn’t involved in the Gibson warrants and raid.

This unfortunate event begs the question, Why Gibson?

Putting aside the presumably misguided motivation to enforce another sovereign nation’s laws, why would a homegrown American company be the target of the Department of Justice in the first place?

It’s worth pointing out that Henry E. Juszkiewicz, Gibson’s Chief Executive Officer, is a donor to a couple of Republican politicians. According to the Open Secrets database, Juszkiewicz donated $2000 to Rep. Marsha Blackburn (R-TN07) last year, as well as $1500 each to Sen. Lamar Alexander (R-TN). Juszkiewicz also has donated $10,000 to the Consumer Electronics Association, a PAC that contributed $92.5k to Republican candidates last year, as opposed to $72k to Democrats. (The CEA did, however, contribute more to Democrats in the 2008 election cycle.)


When warrants as ridiculous such as these are issued and executed, there appears no other reason than because the company or individual at hand is being targeted, not because there is any sort of wrongdoing. As a company, Gibson is a legendary. They’ve done nothing wrong, except, apparently, deigning to have a Republican CEO.

The plot thickens, however.

One of Gibson’s leading competitors is C.F. Martin & Company. The C.E.O., Chris Martin IV, is a long-time Democratic supporter, with $35,400 in contributions to Democratic candidates and the DNC over the past couple of election cycles. According to C.F. Martin’s catalog, several of their guitars contain “East Indian Rosewood.” In case you were wondering, that is the exact same wood in at least ten of Gibson’s guitars.
The Gibson facility wasn’t raided over allegations of tax evasion, charges of embezzlement, or even something as drab as child labor. Not even close. It was raided over what the DOJ deems an inability to follow a vague domestic trade law in India (one that apparently the Indian government didn’t seem too concerned about enforcing) regarding a specific type of wood. Not illegal wood, just wood with obscenely specific procedural guidelines.

[houndawg]

Never mind their guitars, it's their Banjos that are important...

[Ibanez]

So, I wrote my congressmen about this. And got a response today.

Dear Mr. Kerr,



Thank you for contacting me to express your concern over the raid of Gibson Guitar Corporation. I appreciate hearing from you on this issue and share your concern.



As you know, on August 24, federal agents from the U.S. Fish and Wildlife Service raided Gibson Guitar's Tennessee factories and offices, seizing several pallets of wood, electronic files, and guitars. The raid is said to be part of an investigation into whether the company has imported illegal wood in violation of the Lacey Act. The Lacey Act was amended in 2008, expanding the law to cover a broader range of plants and plant products. But as is the case with the expansion of federal authority and laws, there are unintended consequences. Gibson Guitar is unfortunately the latest example of how the Administration aggressively enforces broad over expansive laws and government regulations which destroy jobs.



Like you, I believe we need to curtail abusive federal overreach and halt government agencies from acting outside the original intent of the law. Recently I introduced an amendment to the Agriculture Appropriations bill which would prevent this type of overreach. Unfortunately, Majority Leader Reid cut off debate on the bill and thus the consideration of my amendment. As Congress moves forward, I will look for additional opportunities to address the Department of Fish and Wildlife's over expansive interpretation of the Lacey Act with Gibson Guitar.



Thank you again for sharing your concerns with me. Please feel free to contact me in the future about any issue important to you or your family. It is an honor to serve you and the people of South Carolina.




Sincerely,

Jim DeMint
United States Senator