Tuesday, August 7, 2012

Case Against Gibson Guitar Corp. Dropped

In a somewhat bizarre federal criminal case brought against Gibson Guitar Corp., the two parties have agreed to a settlement that will result only in the imposition of a fine and the forfeiture of property.  Below are some excerpts from a story published in the New Zealand Herald:
US federal prosecutor have announced a deal to drop a criminal case against Gibson Guitar Corp. after the instrument maker acknowledged its importations of exotic wood violated environmental laws.
Nashville-based Gibson agreed to pay a US$300,000 penalty, forfeit claims to about $262,000 worth of wood seized by federal agents and contribute $50,000 to the National Fish and Wildlife Foundation to promote the conservation of protected tree species.
"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," US Attorney Jerry Martin said in a statement.
 Gibson's decision to cooperate with the federal Lacey Act banning the import of endangered wood products stood in contrast to a publicity campaign mounted in protest after agents raided Gibson facilities in Memphis and Nashville. 
Republicans and tea party members had rallied behind CEO Henry Juszkiewicz at the time he denounced the raids as overzealous federal regulation that threatened American jobs.
"We feel totally abused," Juszkiewicz said immediately after the August 2011 raid. He vowed at the time the company would "fight aggressively to prove our innocence." Soon afterward he was invited by House Speaker John Boehner to attend a joint session of Congress in which President Barack Obama delivered a speech on jobs. 
The settlement says a Gibson employee learned during a 2008 trip to Madagascar the source of some of the ebony wood that was seized that it was illegal to import unfinished wood and sent a report about it to his superiors, including company President David Berryman.
The exotic woods used in such guitars are considered integral to the sound. And artists who have played Gibson instruments range widely from Chet Atkins and Maybelle Carter in country to Pete Townshend of The Who and Eric Clapton in rock to Larry Carlton and Paul in jazz. 
Read the entire article here

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