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Caterpillar Owned Company Under Grand Jury Scrutiny

Fri, 22 Nov 2013 16:57:51 CST
By: Charlie Schlenker

Federal investigators have subpoenaed Caterpillar in an investigation into the alleged dumping of train parts off the California coast. According to the Wall Street Journal. the government is investigating a Caterpillar subsidiary for a possible plot to bill railroad companies for uneeded repairs. The Peoria based company disclosed the grand jury investigation into Progress Rail's alleged concealment of evidence that it was charging owners of rail equipment for unnecessarily replacing parts by shoving the parts into the Pacific Ocean near the Port of Long Beach. The U-S Attorney's initial interest was in possible environmental violations. Caterpillar says it does not believe the case will have a material impact on company results. Caterpillar bought the Alabama based Progress Rail in 2006 for about $800 million.

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