Federal agents from the Department of Homeland Security's Immigration and Customs Enforcement and the U.S. Fish and Wildlife Service executed sealed search warrants at Lumber Liquidators' corporate offices in Toano, Va., and another Lumber Liquidators location in Richmond, Va., on Sept. 26.
The Wall Street Journal quoted Brandon Montgomery, spokesman for Immigration and Customs Enforcement's Homeland Security Investigations, as saying "The warrants are sealed and no further details are available at this time of the investigation."
The company released a statement saying it takes its sourcing and compliance very seriously, and is cooperating with authorities to provide them with requested information. The company went on to note that it sources its products from 110 domestic and international mills, which means in the normal course of business, it is subject to a range of domestic and international regulations.
"Due to the scale of its international and domestic operations, Lumber Liquidators has policies and procedures in place for the sourcing, harvesting and manufacturing of its products designed to comply with federal and other regulations related to the importation of wood flooring products," the company stated in a press release, adding, "The Company has more than 60 professionals around the world who perform and monitor those processes."
The company's shares were off sharply in early trading Friday. As of Thursday's close, the stock had more than doubled since the start of the year.
