Lumber Liquidators Holdings will pay more than $13 million in fines after the company pleaded guilty to environmental crimes last year.
The Department of Justice stated that Lumber Liquidators purportedly claimed to officials that the timber used for their wood flooring came from Germany, when in fact they were illegally cut in far eastern Russia and Burma. The trees play a vital role in protecting endangered species, like Siberian tigers and Amur leopards, because reportedly their prey lives through those trees. As such, the company has violated the law according to the Environmental Investigation Agency.
Lumber Liquidators has already settled in October to plead guilty to violations of a customs law and the Lacey Act. As per Washington Post, U.S. District Judge Raymond Jackson in Norfolk had purportedly accepted the plea agreement that the company reached last year with federal authorities. The deal agreed upon will have Lumber Liquidators suffer probation for five years and there will be an appointment of an outside auditor. Also, it will have to implement a strict environmental compliance plan to which the company is expected to verify all wood it imports back to the source of harvesting.
Judge Jackson warned that if the company fails to abide by the agreed terms, Lumber Liquidators will be forced to cease the importation of hardwood.
Aside from this set-up, the company still has to pay the penalties, which include $7.8 million in criminal fines, $1.23 million in community service payments, more than $900,000 in forfeited proceeds and more than $3.15 million in cash through a related civil forfeiture, the EIA said.
Reportedly, the company revealed in a statement that, "Lumber Liquidators is pleased to put this legacy issue behind us." Furthermore, company representatives said they are fully cooperating in the investigation and has since improved their sourcing and compliance practices.
Meanwhile, another investigation continues with regards to the complaint against the company's Chinese-made flooring, which allegedly contained excessive levels of carcinogen formaldehyde.
