Wednesday, August 31, 2011

Something to Fret Over: Feds Raid and Shut Down Gibson Guitars Over Imported Wood- Rival Company & Democrat Donors Untouched

Country singer Kellie Pickler flaunting contraband Gibson acoustic guitar at 42nd CMA awards in Nashville- Marsaili McGrath/Getty Images Entertainment
On Thursday, Aug 24th, agents from the US Fish & Wildlife Service raided Gibson Guitar corporation's Nashville, TN facilities, seizing massive quantities of wood and unfinished guitars. This is the second such raid on Gibson's Tennessee facilities in less than two years- in November 2009 federal agents seized files, documents and Madagascar rosewood used in the fabrication of guitars.

At first blush, this appeared to be a case of regulatory busybodies arbitrarily singling out a particular business for scrutiny. Like the 2009 raid, Gibson CEO Henry E. Juszkiewicz insisted his company was in compliance with both US and international laws regarding the harvesting and importing of rosewood.

The most recent raid apparently centers around the Department of Justice's interpretation of an Indian law (reportedly if the wood was finished by Indian workers are required in order for it to be legal).

However, last week enterprising bloggers took a look at the political contributions Gibson CEO Henry E. Juszkiewicz made over the last few election cycles on watchdog site opensecrets.org. The guitar company's CEO gave over $12,000 in contributions to GOP candidates as well as the Consumer Electronics Association, a PAC that contributed $92,000 to Republicans (Although the CEA also gave more than $70,000 to Democrats).
When warrants as ridiculous such as these are issued and executed, there appears no other reason than because the company or individual at hand is being targeted, not because there is any sort of wrongdoing. As a company, Gibson is a legendary. They’ve done nothing wrong, except, apparently, deigning to have a Republican CEO.

The plot thickens, however.

One of Gibson’s leading competitors is C.F. Martin & Company. The C.E.O., Chris Martin IV, is a long-time Democratic supporter, with $35,400 in contributions to Democratic candidates and the DNC over the past couple of election cycles. According to C.F. Martin’s catalog, several of their guitars contain “East Indian Rosewood.” In case you were wondering, that is the exact same wood in at least ten of Gibson’s guitars.

The Gibson facility wasn’t raided over allegations of tax evasion, charges of embezzlement, or even something as drab as child labor. Not even close. It was raided over what the DOJ deems an inability to follow a vague domestic trade law in India (one that apparently the Indian government didn’t seem too concerned about enforcing) regarding a specific type of wood. Not illegal wood, just wood with obscenely specific procedural guidelines.
It's worth noting that C.F. Martin & Co has not had the same visit from the Feds that their GOP-donating competitors at Gibson have received twice in less than two years.

Keep in mind this is the same Justice Department that allowed American guns to be smuggled to Mexican cartels, decided to sue Arizona after their state legislature passed SB1070 and declined to pursue a voter intimidation and civil rights violation case against the New Black Panther Party after members were videotaped wielding truncheons outside a Philadelphia polling station in the 2008 elections.

With any other Attorney General aside from Eric Holder, I would simply assume this was a case of anal-retentive bureaucrats and regulatory busybodies attempting to prove their relevance. However, this is the Department of Justice under Holder, so it's very difficult to see anything aside from Chicago-style politics in play as far as Gibons and C.F. Martin & Co are concerned.

UPDATE 8/30: In an even more curious development, Doug Ross' Director Blue blog was among the first to detail the political donations from CF Martin & Co. For a few hours on Tuesday afternoon, the blog had disappeared altogether before reappearing later on. Not just the post on the Gibson raid, but the entire blog.

UPDATE 8/31: In an interview on KMJ radio on Wednesday, CEO Henry Juszkiewicz said that he was told by government officials that his company's legal troubles would go away if he used Madagascar labor instead of US Labor at his factory.

[Hat tip: Dana Loesch; Director Blue; All American Blogger]

1 comment: