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NEW YORK (CNNMoney) -- Gibson Guitar Corp. has agreed to pay a fine for illegally importing exotic wood from Madagascar and India, the U.S. government said Monday.
Gibson will pay a $300,000 penalty to avoid criminal charges for importing ebony and rosewood in violation of the Lacey Act, which prohibits the acquisition of plant products that are protected in other countries, the Department of Justice said in a statement.
I am using the new 1040XTRAEZ form this year. It has just 2 lines.
1. How much did you make in 2023?
2. Send it to us.
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Legit or a shakedown?
We likely will never know.
But that seems like a lowball price, no?
--Mac
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I bet they made $300,000 in sympathy orders alone.
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Quote:
I bet they made $300,000 in sympathy orders alone.
Agreed, that probably translates to less than 1 day's production.
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Mac, Quote:
Legit or a shakedown?
My vote is a shakedown. Shame on the Feds!
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Quote:
But that seems like a lowball price, no?
It is a lowball price. The Feds didn't have a case, but they couldn't slink away without exacting a penalty.
I followed the thing closely when it first broke. I even read all 33 pages of the affadavit.
It was a joke.
Armed Feds intruding on an American company for a BS charge.
Gibson gave more to the republicans and were penalized. Martin supported the Democrats and imported the SAME wood. No problem for them.
That ain't right. JMHO.
FWIW, I'm a Martin fan when it comes to acoustic guitars.
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There was an excellent article by Bob Taylor in the latest Wood and Steel about managing the ebony forests with future supply in mind and what the major guitar manufuacturers were not aware of about how ebony is harvested. Taylor is now control of a lion's share of the ebony supply, partly because of smart business, and partly because they were able to impress the country of origion with their forest management practices. http://www.taylorguitars.com/wood-and-steel/
Keith
2024 Audiophile Windows 11 AMD RYZEN THREADRIPPER 3960X 4.5GHZ 128 GB RAM 2 Nvidia RTX 3090s, Vegas,Acid,SoundForge,Izotope Production,Melodyne Studio,Cakewalk,Raven Mti
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$300,000? That's just a few Les Pauls at today's retail prices.
I'm sure they projected legal fees to fight back would have been much higher. If the charges are without merit, it doesn't seem right to have to pay the fine, but unfortunately that's not how the real world works sometimes.
Living in The Music City
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Just a "few" Les Pauls?
Gad, whotareyou payin'?
Um, I mean, "Wanna buy a Les?"....
--Mac
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I followed this as well in detail. Henry Juskiewicz is an alumni of General Motors Institute, where I got my undergrad degree.
Juskiewicz has made contributions to interests on both sides of the aisle - check out his efforts with the Rainforest Alliance and who the leadership of that organization happen to be. Let's just say you won't see their names heralded with positive comments on Fox News.
I'm guessing this is more personal, parties aside. The 2011 raid was not the first on Gibson.
My guess is that with his style and M.O., he really has ticked off someone personally, and the government is the machine behind which that person gets to hide as they exact revenge.
I doubt we'll ever really see the whole truth in this one. The whole thing has a cess-pool stench to it and it's not limited to one party.
-Scott
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What happened to the lumber in question? Did Gibson get it back, and what condition was it in? The Feds would never reveal where it was being stored. Was it properly climate controlled, or did Gibson get screwed twice?
"My primary musical instrument is the personal computer."
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Gibson does not get the lumber; that is in one of the press releases today. Gibson has been screwed multiple times on this. They still don't have the lumber that was seized from them in 2009.
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Quote:
Legit or a shakedown?
We likely will never know.
But that seems like a lowball price, no?
--Mac
BINGO!
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Quote:
Gibson does not get the lumber; that is in one of the press releases today. Gibson has been screwed multiple times on this. They still don't have the lumber that was seized from them in 2009.
For us bystanders, … left or right, … we’re watching an ICONIC American company be trashed by the Feds without any evidence of wrongdoing. If the Feds had real evidence, … they would have prosecuted. But they didn’t, so they issued a fine. They know Gibson will pay the fine instead of challenging because it’s many times cheaper.
And the confiscated wood will be allowed to rot.
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Chris Martin, Chairman and CEO of the C.F. Martin Guitar Co. in Nazareth, Pa., says that when he first heard guitars built from Madagascar rosewood, he dreamed it might be the long-sought substitute for Brazilian rosewood, whose trade was banned in the 1990s due to over-harvest. Then the situation in Madagascar changed.
"There was a coup," Martin says. "What we heard was the international community has come to the conclusion that the coup created an illegitimate government. That's when we said, 'Okay, we can not buy any more of this wood.'"
And while some say the Lacey Act is burdensome, Martin supports it: "I think it's a wonderful thing. I think illegal logging is appalling. It should stop. And if this is what it takes unfortunately to stop unscrupulous operators, I'm all for it. It's tedious, but we're getting through it."
Keith
2024 Audiophile Windows 11 AMD RYZEN THREADRIPPER 3960X 4.5GHZ 128 GB RAM 2 Nvidia RTX 3090s, Vegas,Acid,SoundForge,Izotope Production,Melodyne Studio,Cakewalk,Raven Mti
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I’m a big fan of all the guitar companies mentioned and I really couldn’t possibly care less about their politics. I’m also a big fan of nature and the outdoors and protecting it. This was never about wood. As Scott said, it’s about some kind of grudge or hidden agenda. That just stinks to high heaven. Thanks Eddie for posting an update. I still haven’t seen it in the news. Who wants to bet this isn’t the last time the Feds target Gibson? Jeez. Quote:
What happened to the lumber in question? Did Gibson get it back, and what condition was it in? The Feds would never reveal where it was being stored. Was it properly climate controlled, or did Gibson get screwed twice?
Yes Richard, Gibson got screwed at least twice. The wood wasn't even illegal! It was mislabeled by one of the shipping parties. The wood was worth FAR more than the fine.
Last edited by bobcflatpicker; 08/06/12 11:19 PM.
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I saw that heading and thought NO I bl**dy won't then I read the post and calmed down, a bit. Odd state of affairs tho'.
And to think that pianos once used Ebony And Ivory, who as Mr McCartney said, Live Together In Perfect Harmony Side By Side On My Piano Keyboard.
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