Lumber Liquidators to Pay $13 Million Penalty for Illegal Imports
February 01 2016 - 7:20PM
Dow Jones News
NEW YORK—Lumber Liquidators will pay more than $13 million for
illegally importing hardwood flooring, after the company pleaded
guilty to environmental crimes last year.
The Justice Department said Lumber Liquidators made hardwood
floors in China from illegally cut Mongolian oak trees in Russia.
Those trees are needed to protect endangered Siberian tigers and
Amur leopards because their prey eats the acorns from them, the
Justice Department said.
Lumber Liquidators, which was sentenced Monday in federal court,
said in a statement that it is "pleased to put this legacy issue
behind us."
Lumber Liquidators will pay $7.8 million in criminal fines, more
than $1.2 million in community service payments and nearly $970,000
in criminal forfeiture. It will also pay about $3.2 million through
a related civil forfeiture. The company also agreed to a five-year
probation period.
The Justice Department said the penalty is the biggest for
timber trafficking under the Lacey Act.
The company pleaded guilty to environmental crimes in October.
Its plea agreement was unrelated to the controversy over some of
its laminate flooring from China, which the CBS TV news show "60
Minutes" had reported contains high levels of the carcinogen
formaldehyde.
Lumber Liquidators of Toano, Va., sells flooring at more than
370 stores around the country.
Shares of Lumber Liquidators Holdings Inc. rose 45 cents, or
3.5%, to close at $13.36 Monday.
Copyright 2016 the Associated Press
(END) Dow Jones Newswires
February 01, 2016 19:05 ET (00:05 GMT)
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