Senior executives of one of Lumber Liquidators’ Russian timber suppliers have been found guilty in a Russian court of 15 counts of illegal logging, according to the Environmental Investigation Agency.
The company, Beryozoivy, was a “key supplier” of timber to a Chinese flooring manufacturer called Xingjia, which the EIA reported in its 2013 report “Liquidating the Forests” as the primary manufacturer of U.S. flooring retailer Lumber Liquidators.
The Russian court stated in the conviction that Beryozoivy was a front organized by a criminal group for the purpose of illegal logging. The court found the company had organized at minimum 15 separate instances of illegal logging from 2010–2012, according to the EIA.
The EIA researched customs records from Russia and the U.S. They found that Beryozoivy was a supplier to Xingjia from 2010–2012, and records from the U.S. during this time period show Lumber Liquidators imported wood from Xingjia.
The court estimated the Russia loggers stole more than 52,972 cubic feet of wood. The operation caused $2 million in damage to the Russian economy and environment, the court said.
Lumber Liquidators has been sued in the U.S. for allegedly selling wood flooring products manufactured with illegal lumber. The company faces other lawsuits related to the level of formaldehyde in its products and to the company's financial disclosures.
