Lumber Liquidators hires new compliance chief

Toano, Va. – Shuffling in the executive ranks continues at embattled Lumber Liquidators Holdings Inc., in the wake of accusations the retailer sold Chinese hardwood laminate products that had illegal levels of formaldehyde. Lumber Liquidators has hired Jill Witter as chief compliance and legal officer.



Witter formerly served as general counsel at Rayonier Inc., in the Forest Resources Division of the International Paper Company, and ethics and compliance officer at Novation LLC, She replaces former chief compliance officer Ray Cotton, who resigned in June.



Other recent shakeups at Lumber Liquidators include the departure of Robert Lynch, former CEO, who resigned in May 2015. Marco Q. Pescara, the company's chief marketing officer since 2006, was promoted to serve as chief merchandising and marketing officer effective June 19. The employment of William K. Schlegel, former chief merchandising officer, was terminated effective June 19.



Lumber Liquidators recently said the California Air Resources Board (CARB) informed it that preliminary tests of Chinese hardwood flooring product samples showed dangerously high levels of formaldehyde, which is a known carcinogen. The investigation is ongoing and CARB may file a claim, though no formal violation notice has been issued.



Since “60 Minutes” first ran an expose alleging dangerously high levels of formaldehyde in Chinese hardwood products sold at Lumber Liquidators in March, the company has seen share value fall and reported a first and second quarter net loss.



Witter will report directly to founder and acting CEO Thomas D. Sullivan, and has been consulting and advising the company's compliance team since early July. Witter's duties will include directing all aspects of legal matters, including complex litigation management, compliance and compliance program development, quality assurance and public affairs.