Gibson Guitar Corp. agreed to pay the federal government $300,000 to resolve a criminal case that alleged the musical instrument maker illegally purchased and imported ebony wood from Madagascar and rosewood from India. The two parties agreed to a comprehensive resolution of all potential civil and criminal liabilities, including all potential charges against officers, directors and employees.

Pillsbury partners Don Carr and Bill Sullivan successfully negotiated a novel “criminal enforcement agreement” with the Department of Justice, in which the government declined to pursue any criminal charges against Gibson Guitar in connection with its importation of Madagascar rosewood and India ebony. The agreement resolves a three-year criminal investigation which included government search warrants, seizures and grand jury subpoenas.