TOANO - More than a year after federal investigators raided the company's headquarters, the chief compliance officer for flooring giant Lumber Liquidators is addressing steps the company is taking to ensure it is buying legally-sourced timber.
Agents with Homeland Security Investigations began investigating the company in September 2013 after allegations surfaced that the company was knowingly buying illegally-sourced timber.
The federal investigation was followed by multiple lawsuits and criticism from two environmental non-profits, the Environmental Investigation Agency and Greenpeace.
Both organizations claimed to have proof that the company was knowingly buying illegal timber in China and Brazil, respectively.
Now the embattled company is responding by creating a new sustainability policy.
Ray Cotton, the company's chief compliance officer, spoke exclusively with 13News Now about the policy, in his first interview since the federal investigation began.
Cotton was hired in February, months after the federal investigation began. In the time with the company, he has been promoted to senior vice president and given additional staff to oversee the company's compliance with federal sourcing laws.
But Cotton says his hiring, additions to his staff and the creation of the formal sustainability policy is not a response to the investigation or months of scrutiny the company has gotten.
"In terms of the way we source, we've always been world class," Cotton said. "We've always been transparent about those things. I think the difference is we've made it more obvious on the optics."
Daniel Brindis, a Greenpeace activist who has led the campaign against Lumber Liquidators' sourcing in Brazil, said he is encouraged by the company's recent action but hopes to see more progress in the future.
"This is definitely a significant step. It represents a high level of investment on the part of the company that wasn't there before," Brindis said. "We feel like its commitments to environmental and social responsibility could be a bit more specific and stronger."
Brindis was quick to add that the new steps Cotton and his team are taking now does not mean that they should be cleared from past allegations of wrongdoing.
But Cotton said the company has never knowingly broken the law.
"We are transparent and we are open and ethical in the way we do things," Cotton said. "I have known the CEO a long time. He wants to provide best value to customers, shareholder value, all stakeholders but he's not going to cheat to do that."
The company's sustainability webpage outlines a number of steps and initiatives planned to ensure continued compliance with federal laws. Among those are plans to increase DNA testing of wood and aggressive scrutiny of customs paperwork that comes with imported wood by third-party auditors.
Cotton said he is also traveling to the company's suppliers around the world to educate them about the company's policies. He said his team will only continue to improve on the company's commitment to sustainability.
"I have asked those questions and I have pushed hard and I've gotten good answers. I'm still here. The company is doing all the right stuff and only getting better," he said.
