Multiple Federal Law Enforcement agencies executed search warrantsat three Caterpillar offices today. Federal agents entered Caterpillar’s World Headquarters Building on South West Adams St. in Peoria, Building AD in East Peoria and the Morton offices. The identical search warrants allowed the federal government to seize a wide range of documents, hardware and software related to the movement of any products between the U.S. and Switzerland, specifically the Swiss Subsidiary Caterpillar known as CSARL.
In 2014, the U.S. Senate issued a report that may be related to today’s criminal search. The 99-page document was titled ‘Caterpillar’s Offshore Tax Strategy.’ The report alleges Caterpillar used the subsidiary to avoid paying $2.4 billion in taxes over a period of 13 years.
The FDIC Office of Inspector General, the IRS Criminal Investigation Division, and the U.S. Department of Commerce, Office of Export Enforcement participated in the search of Caterpillar’s offices.
A statement from Caterpillar says only confirmed the search warrants were executed and said the company is cooperating with the investigation, and that the warrant references information it previously disclosed in its Feburary 10K filing with the Securities and Exchange Commission.
While many employees seem to be unaffected by the federal search, others are being interviewed individually by authorities. Some were sent home for the day at approximately 11 A.M..
Caterpillar shares traded down 4.28% today following news of the federal raid.
Related Links
- Search Warrant as filed by the U.S. District Court for the Central District in Illinois
- Caterpillar Corporate Tax Strategy - 2014 U.S. Senate Subcommittee report
- CaterpillarSEC 10K SEC Filing- 2/15/17
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