Essential oil maker pleads guilty to Lacey Act violations

Young Living Essential Oils, based in Lehi, Utah, pleaded guilty in a federal court Monday to charges that it violated U.S. regulations when it illegally handled shipments of rosewood and spikenard oils.     Young Living Essential Oils, based in Lehi, Utah, pleaded guilty in a federal court Monday to charges that it violated U.S. regulations when it illegally handled shipments of rosewood and spikenard oils, according to a statement from the Justice Department.
   Specifically, the company violated the Lacey Act and Endangered Species Act when it handled these products without proper authorizations.
   Young Living was issued a fine of $500,000, in addition to $135,000 in restitution and a $125,000 community service payment for protected plants conservation. It was also given five years’ probation with special conditions that include implementation of a corporate compliance plan, audits, and the publication of statements regarding its convictions.
   The fines could have been heftier, but Young Living voluntarily disclosed the violations, once discovered, in July and December 2015 to federal regulators. It also cooperated with the government’s investigation.
   “This sentence reflects both the seriousness of the offenses and the acceptance of responsibility and cooperation by the company,” U.S. Attorney John W. Huber for the District of Utah, said in a statement.
   According to court documents, from June 2010 to October 2014, several Young Living employees and contractors harvested, transported, and distilled 86 tons of rosewood (Aniba roseaodora or Brazilian rosewood) in Peru and illegally imported some of the oil into the United States, through Ecuador. The company did not obtain required CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora)  export permits from Peru. 
   In December 2015, Young Living also exported spikenard oil harvested in Napal and shipped via the United Kingdom without a CITES permit. 
   In addition, the government’s investigation revealed that between November 2014 and January 2016, Young Living bought more than 1,100 kilograms of rosewood oil from a supplier/importer in the United States without conducting due diligence to verify lawful sourcing of that oil.
   According to the Justice Department, the fair market retail value of the plant products involved in these violations, about 1,900 liters of rosewood oil, to be over $3.5 million but not more than $9 million.
   Rosewood and spikenard oils are sought after for their reported health properties, such as an antiseptic, antibacterial, and deodorant.