On Aug. 24, 2011, federal agents executed four search warrants on Gibson Guitar Corp. facilities in Nashville and Memphis, Tenn., and seized several pallets of wood, electronic files and guitars. …. Two hostile raids on its factories by agents carrying weapons and attired in SWAT gear where employees were forced out of the premises, production was shut down, goods were seized as contraband and threats were made that would have forced the business to close.”
In one raid, the feds hauled away ebony fingerboards, alleging they violated Madagascar law. Gibson responded by obtaining the sworn word of the African island’s government that no law had been broken.
In another raid, the feds found materials imported from India, claiming they too moved across the globe in violation of Indian law. Gibson’s response was that the feds had simply misinterpreted Indian law.
Interestingly, one of Gibson’s leading competitors is C.F. Martin & Co. According to C.F. Martin’s catalog, several of their guitars contain “East Indian Rosewood,” which is the exact same wood in at least 10 of Gibson’s guitars. So why were they not also raided and their inventory of foreign wood seized?
Grossly underreported at the time was the fact that Gibson’s chief executive, Henry Juszkiewicz, contributed to Republican politicians. Recent donations have included $2,000 to Rep. Marsha Blackburn, R-Tenn., and $1,500 to Sen. Lamar Alexander, R-Tenn.
By contrast, Chris Martin IV, the Martin & Co. CEO, is a long-time Democratic supporter, with $35,400 in contributions to Democratic candidates and the Democratic National Committee over the past couple of election cycles.
Gibson, fearing a bankrupting legal battle, settled and agreed to pay a $300,000 penalty to the U.S. Government.