Feds execute warrant at Lumber Liquidators HQ

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Associated Press

Posted on September 26, 2013 at 6:01 PM

RICHMOND, Va. (AP) — Federal authorities on Thursday executed a search warrant at the Virginia headquarters of hardwood flooring retailer Lumber Liquidators.

Immigration and Customs Enforcement's Homeland Security Investigations spokesman Brandon Montgomery said the warrant was executed at the company's Toano, Va., headquarters and a Lumber Liquidators business location in suburban Richmond in coordination with U.S. Fish and Wildlife Service and the Department of Justice.

No other information about the details of the search was provided and Montgomery said the warrant is sealed. He could not say whether the warrant was related to a particular person or for the company as a whole.

A spokesman for the U.S. Attorney's Office for the Eastern District of Virginia did not immediately return a phone message seeking comment.

In a statement, the company said it is cooperating to provide information and documentation to "answer questions relating to the importation of certain products."

Lumber Liquidators Holdings Inc. has more than 305 stores in North America.

According to the agency's website, Homeland Security Investigations probes a wide range of domestic and international activities arising from the illegal movement of people and goods into, within and out of the U.S. It investigates immigration crime, human rights violations and human smuggling, smuggling of narcotics, weapons and other types of contraband, financial crimes, cybercrime and export enforcement issues.

In July, Lumber Liquidators said its second-quarter net income jumped nearly 68 percent to $20.4 million as its revenue rose to $257.1 million and lower costs increased its profit margins. It also announced plans to construct a new East Coast distribution center outside Richmond and lease another facility in California to help make its supply chain more efficient.

Shares of Lumber Liquidators Holdings Inc. added $2.16, or 2 percent, to close Thursday trading at $112.96. The stock has traded between $47.31 and $115.59 in the past 52 weeks, and has more than doubled since the start of the year.

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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum.

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