Thursday, November 19, 2009

Gibson Guitar CEO leaves rainforest group after Nashville raid

Gibson Guitar Corp.'s top executive will take a leave of absence from the board of the Rainforest Alliance, an environmental group, in the wake of a federal search for banned wood products at the instrument maker's Nashville factory, officials said Wednesday.
Henry Juszkiewicz, Gibson's CEO and chairman, won't rejoin the board until the investigation ends, the alliance said in a statement.

Federal officials searched the plant Tuesday. An affidavit sought by the U.S. Attorney's Office here that might shed more light on the investigation hasn't been unsealed in federal court.

Some exotic hardwoods traditionally used in making premium guitars have been banned from commercial trade because of environmental concerns under a recently revised federal law known as the Lacey Act. Trading in banned woods from endangered rain forests is a federal offense, punishable by civil and criminal penalties or the seizure of property.

RelatedGibson Guitar plant in Nashville raided by fedsMusicians who play Gibson guitars

After the federal search, Juszkiewicz called the alliance and offered to take a leave of absence "to avoid conflict or distraction," said President Tensie Whelan. "It's very difficult to know what's happening at this point," Whelan added. "Our hope indeed is there will be no violations of the Lacey Act."

Juszkiewicz has been on the group's board for more than 15 years and has taken a lead role in urging the music instrument industry to use sustainable wood products, the group said.

The federal inquiry raised some eyebrows.

"I think it shows the reach of the Lacey Act, and nobody is immune from its prohibitions," said James Goldberg, Washington-based counsel for NAMM, a trade group that represents music equipment distributors, retailers and instrument makers. "Even if you think you know your suppliers, you may (still) have a problem."

Gibson did not respond to a request for comment on Wednesday.

Wendy Lee can be reached at 615-259-8092 or wlee@tennessean.com.



Real Estate Outlook: Just Right HousingNashville business calendar