U.S. law enforcement searches Caterpillar's Illinois facilities

[marybourg]

Uh Oh! Sad!

Federal law enforcement officials searched three facilities of heavy machinery manufacturer Caterpillar Inc on Thursday, a spokeswoman for the U.S. Attorney Office for the Central District of Illinois said, prompting a sharp selloff in the company's stock.

The spokeswoman, Sharon Paul, confirmed that federal law enforcement activity was conducted at locations in Peoria, East Peoria and Morton.

It was not immediately clear why federal agents raided the three locations.

Agencies involved in the search included the Internal Revenue Service's Criminal Investigation Division, the U.S. Department of Commerce's Bureau of Industry and Security's Office of Export Enforcement, and the Federal Deposit Insurance Corp.'s Office of Inspector General, the U.S. Attorney Office's Paul said.


http://www.reuters.com/article/us-caterpillar-probe-idUSKBN1692GI

[RealityChik]

1. Tax evasion.

Why else would an American heavy equipment company open a subsidiary in Switzerland, while most of their clients are elsewhere, hither and yon? This article sums it all up rather succinctly:

https://www.law360.com/articles/622432/caterpillar-reveals-grand-jury-probe-over-cash-movement

Looks like they never mastered the corporate criminal activity thing very well. Guess their squeaky-clean corporate history sorta gave them away.

[Hortensis]

2. Oh, and "undistributed profits." Our paltry investments

could be invested in almost anything, and often are, so I think I'll be provisionally angry. In any case, not okay if true.

[lpbk2713]

3. Somebody's been cooking the books.

They can smell roasted caterpillar.

[coco22]

4. Oh well.

They lied to President Obama..