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Gibson settles federal lawsuit

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clearerphish

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http://money.cnn.com/2012/08/06/news/companies/gibson-imports-wood/index.htm?hpt=hp_t3

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.
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The guitar maker will also have to make a "community service payment" of $50,000 to the U.S. National Fish and Wildlife Foundation to promote conservation and development of tree species used in making musical instruments.

The company also will withdraw its claims to the $262,000 worth of exotic woods seized by federal authorities, said the Department of Justice.
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settling this to the tune of 3/4 of a mil is quite interesting...
 
IDK, 750k buys a lot of billable hours. Seems like if it were a shakedown there would be a pushback just on principle. I'm not saying Gibson's guilty of anything, just surprised they settled and for so much.
 
A fleet of lawyers going up agin' the Federal Gov'mint can rack up 300 large in billables in no time.  It would cost vastly more to defend this action than to settle up as G. appears to have done.  Taking into account potential criminal penalties, 300k is a bargain, shakedown or not.  I'm an awfully lib'rul sorta guy when it comes to delegation of certain powers to the executive branch, but the kind of prosecutorial discretion the various federal agencies enjoy is abused horrendously in, alas, all too many instances.  </rant>


Henry J. is marketing a lot of goofy and/or mediocre axes* on the strength of Gibson's storied history.  That alone suggests he's not the guy who's gonna bet the company on a principle.  His co-owners are probably more interested in continuing down the road of profitable mediocrity than potentially killing the golden goose by taking a stand on principle.  A pushback on principle is a luxury most businesses aren't willing to buy themselves, if it would unduly affect the bottom line.



* (and to be honest, quite a few nice ones)
 
Settling is usually the only option. It doesn't matter if you're really innocent or not; it matters that your chances of winning a case against the Feds aren't good enough to risk losing. Most laws aren't written with protecting the innocent in mind.
 
Of course there's also the issue of whether insurance coverage would have paid for the defense.  Many CGL policies won't pay to defend a criminal action, or at least won't pay penalties if criminal liability is found.  You can bet someone from Chubb or whoever insures Gibby had a say in how this proceeded.
 
It's too valuable to let anybody make stuff out of it - they'll have to burn it, just like all the drugs!

(or maybe commission a $35,000 study on the feasability of teaching crackheads to glue it back together into trees and mail em' back to Madagassa or whumhoot wherever.)
 
Confiscated ill-gotten gains are often auctioned off if they can't be returned to their rightful owners. In this case, I don't know who the rightful owner would be. Like drugs, they were sold in good faith, but Gibson can't own them, so Stubby's probably right. They'll burn it. Or, at least say they did when it turns up missing.
 
The Fed can't sell the wood or they are in violation of the lacey act also so they have no choice but to destroy it. As with all law suits it easier and cheaper to settle then drag it out and pay the lawyers.
 
Phinox said:
they have no choice but to destroy it.
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Well, we'll see... if in a couple of months, Obama shows up with a really nice custom bass made completely out off lovely exotic woods, than we will finally really know what went on!!!



:icon_jokercolor:
 
Phinox said:
The Fed can't sell the wood or they are in violation of the lacey act also so they have no choice but to destroy it. As with all law suits it easier and cheaper to settle then drag it out and pay the lawyers.
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So true, by the regulations of their own laws it would be hypocritical for them to sell it. But who says the govt isn't hypocritical... :dontknow:

And like you say, they would most likely destroy it, which we all know would be better than to have let it be made into guitar parts.. :tard:
 
Marko said:
Phinox said:
they have no choice but to destroy it.
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Well, we'll see... if in a couple of months, Obama shows up with a really nice custom bass made completely out off lovely exotic woods, than we will finally really know what went on!!!



:icon_jokercolor:
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Certainly not getting political, but one presidential nominee already owns a guitar chain retail store that has companies do one offs for his stores only.  Ebony drumsticks?  Rosewood Lapsteels?
 
It would be stupid to destroy it. They should either do something charitable with it, or give it to disabled vets to do whatever they want with it, or something like that.
 
Super Turbo Deluxe Custom said:
Marko said:
Phinox said:
they have no choice but to destroy it.
Click to expand...

Well, we'll see... if in a couple of months, Obama shows up with a really nice custom bass made completely out off lovely exotic woods, than we will finally really know what went on!!!



:icon_jokercolor:
Click to expand...

Certainly not getting political, but one presidential nominee already owns a guitar chain retail store that has companies do one offs for his stores only.  Ebony drumsticks?  Rosewood Lapsteels?
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I try to avoid McGuitar center as much as I can!!! :)
 
Super Turbo Deluxe Custom said:
Certainly not getting political, but one presidential nominee already owns a guitar chain retail store that has companies do one offs for his stores only. 
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You might want to check your "facts" - they're way off.
 
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