BOISE, Idaho — The Department of Justice (DOJ) recently announced that the Boise Cascade Company has pleaded guilty to a felony violation of the Lacey Act by participating in a scheme to avoid paying tariffs on illegally imported lumber from China.
Boise Cascade was sentenced on Monday and must pay a $6,382,000 fine and implement a "compliance plan" to avoid further Lacey Act violations. The DOJ says the total fine is twice the gross profits generated by the scheme.
In their case, the DOJ demonstrated that a Boise Cascade distribution center in Pompano, Florida, purchased $30 million in illegally imported Chinese plywood from Horizon Plywood between 2018 and 2021.
According to a DOJ news release, Horizon smuggled the illegal lumber by moving Chinese products to new containers during stops in Malaysia en route to the United States. Once the product arrived in the United States, the DOJ claims Horizon participated in "falsifying import declarations." The DOJ reports Boise Cascade was aware that Horizon "previously tried to hide the origin of the wood that it imported."
“This scheme defrauded taxpayers of import duties and undercut law-abiding competitors by importing and selling between $25 million and $65 million worth of plywood products," said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). "By purchasing these illegal imports, Boise Cascade helped perpetuate the scheme.”
The DOJ contends, "Boise Cascade knew or should have known the plywood purchased from Horizon was sourced from China."
Furthermore, federal law enforcement officials said that Boise Cascade was aware of an executed search warrant at Horizon's warehouse in South Florida in January of 2021. Despite that, they continued to place orders for plywood in the weeks following.
Horizon's principal owners, Noel and Kelsy Quintana, were previously sentenced for Lacey Act violations and conspiracy in Febuary 2024. Horizon employee Marta Angelbello was also sentenced for providing a false statement concerning their role in the scheme.
“Boise Cascade’s guilty plea is a significant step toward ending illegal timber shipments from entering our country, thereby bolstering American security and safeguarding American citizens from threats of transnational criminal organizations," said Associate Attorney General Stanley E. Woodward Jr.
Boise Cascade issued the following statement regarding the case: “Boise Cascade is pleased to resolve this legacy matter involving plywood purchases at our company’s distribution facility in Pompano, Florida between 2017 and 2021 from a former U.S. based supplier and that supplier’s importation of those products. We move forward as a stronger company with an even greater vigilance towards trade policies and procedures. Boise Cascade is committed to rigorous compliance across our businesses, as evidenced by the time and resources we have invested in these programs. Looking ahead, we remain focused on delivering exceptional value to our customers and partners and will continue to be guided by our longstanding core values of Safety, Integrity, Respect, and the Pursuit of Excellence.”
Homeland Security Investigations was the lead investigative agency in the case. Customs and Border Protection offered support.
