Capitol Fax.com - Your Illinois News Radar » Feds raid Cat HQ
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Feds raid Cat HQ

Thursday, Mar 2, 2017 - Posted by Rich Miller

* Peoria Journal Star

Federal officials executed a search warrant at three Caterpillar, Inc. facilities in the Tri-County Area — including the corporate headquarters — Thursday morning.

Company officials confirmed the presence in a statement without specifying which agency was performing the search or what the search was in regard to. A spokeswoman declined by email to provide further details.

“Caterpillar is cooperating,” the brief statement said.

* ZeroHedge

At least some of the agents entering the headquarters building wore jackets bearing an Internal Revenue Service logo, others appeared to be from the Federal Deposit Insurance Corporation. Others simply denoted that they were federal agents. A placard in the window of one of the federal vehicles noted it was used by police from the U.S. Department of Commerce Bureau of Industry and Security Office of Export Enforcement.

IRS, FDIC and the Security Office of Export Enforcement? This doesn’t look good.

* Video…


       

51 Comments
  1. - Louis Capricious - Thursday, Mar 2, 17 @ 11:15 am:

    === At least some of the agents entering the headquarters building wore jackets … ===

    Never heard of ZeroHedge, but that paragraph is verbatim from the Journal Star.


  2. - Pudding - Thursday, Mar 2, 17 @ 11:20 am:

    https://www.google.com/finance?q=Cat&ei=NFS4WJGgOZKDsAHepov4Cw


  3. - Honeybear - Thursday, Mar 2, 17 @ 11:20 am:

    Oh that’s bad. That’s really really bad. Dear God


  4. - Wow - Thursday, Mar 2, 17 @ 11:20 am:

    Probably a few less executives will be making the big move to Chicago.


  5. - OkComputer - Thursday, Mar 2, 17 @ 11:22 am:

    Former CAT guy Mr. Oberhelman has been in DC quite frequently lately…


  6. - Chicago Cynic - Thursday, Mar 2, 17 @ 11:23 am:

    HOLY CRAP. This looks really bad. Really really bad.


  7. - Anonymous - Thursday, Mar 2, 17 @ 11:24 am:

    Time to lawyer up.


  8. - Curl of the Burl - Thursday, Mar 2, 17 @ 11:28 am:

    Well…since Matt Damon played the main character in “The Informant” then it stands to reason that Ben Affleck must play the main character in the movie about this debacle.


  9. - OkComputer - Thursday, Mar 2, 17 @ 11:28 am:

    “Throw the Book Thursday”


  10. - Southern Dawg - Thursday, Mar 2, 17 @ 11:29 am:

    Maybe they’re not playing ball with The Donald?


  11. - wordslinger - Thursday, Mar 2, 17 @ 11:30 am:

    –”Caterpillar is cooperating…”–

    Yeah, well, they have a search warrant. Not a choice, unless you’re going to go all Bundy family.

    FDIC is a puzzler. Maybe they just called in all the federales in the area to execute the warrant?


  12. - Puddintaine - Thursday, Mar 2, 17 @ 11:34 am:

    Inform now! And get extra turnips next winter.


  13. - Truthteller - Thursday, Mar 2, 17 @ 11:37 am:

    Perhaps Oberhelman should have been paying a little less attention to worker’s comp and a little more to whatever else the company has been doing. WC is the least of CAT’s problems


  14. - Robert the Bruce - Thursday, Mar 2, 17 @ 11:38 am:

    A whistleblower angry that they’re moving the hq out of Peoria?

    Like many big corporations, Cat has a pretty large accounting team devoted to avoiding taxes.


  15. - Soccermom - Thursday, Mar 2, 17 @ 11:38 am:

    Holy cow.


  16. - DuPage Saint - Thursday, Mar 2, 17 @ 11:43 am:

    maybe they should forget Chicago and move their headquarters to Terra Haute to be close to the prison


  17. - Puddintaine - Thursday, Mar 2, 17 @ 11:45 am:

    Zombie Alan Rickmann has taken over the top floor. Demands bearer bonds…


  18. - 47th Ward - Thursday, Mar 2, 17 @ 11:46 am:

    They haven’t even moved to Chicago yet and they’re already under federal investigation. They are going to fit right in.


  19. - wordslinger - Thursday, Mar 2, 17 @ 11:49 am:

    Between Schock and CAT, the river must be crawling with federales. Big Al’s must be jumping.


  20. - OkComputer - Thursday, Mar 2, 17 @ 11:52 am:

    Who Got Played in Peoria?


  21. - Moe Berg - Thursday, Mar 2, 17 @ 11:56 am:

    Oberhelman, who loved to lecture Illinois elected officials about what a poor job they were doing, made terrible business decisions, shed lots of jobs, and saw his company lag the growth in the S&P 500 by 57% during his tenure (Jul. 1, 2010 - Dec., 31, 2016). This could be an incredible topper to an undistinguished career.


  22. - Annonin' - Thursday, Mar 2, 17 @ 11:59 am:

    Local radio has pre-empted both mid day whack jobs —Glenn Beck and Rush — to report almost nothing new. Also takin’ calls from listeners who sharin’ some of the great love that has developed since they told everyone their big checks were headed for CHI to be closer to the airport.
    Maybe BigBrain should cruise by now that he is down wreckin’ the Grand B*


  23. - Anon221 - Thursday, Mar 2, 17 @ 12:03 pm:

    A commenter on an outside blog posted this as a possible reason why the raid took place-

    https://www.forbes.com/sites/robertwood/2015/02/19/caterpillars-terrible-horrible-no-good-very-bad-day/#7a0df4be6d38


  24. - Puddintaine - Thursday, Mar 2, 17 @ 12:10 pm:

    After posting fifty plus months of losses, what could possibly be worse? This just in:


  25. - Soccermom - Thursday, Mar 2, 17 @ 12:20 pm:

    Anon221 — fascinating.

    Soccermom would like to assign someone to check out the political contributions of Oberhelman and the rest of Cat’s management team. (Would do it myself, but I am pretending to work…)


  26. - Anon221 - Thursday, Mar 2, 17 @ 12:22 pm:

    Second try:

    From just a few days ago…

    “Oberhelman, who also is chairman of a White House working group on infrastructure, extended an invitation to Trump to come operate a Caterpillar tractor. The president appeared to accept, saying he might come do so soon.”

    http://www.pjstar.com/news/20170223/trump-to-oberhelman-i-love-caterpillar


  27. - notbuyingit - Thursday, Mar 2, 17 @ 12:24 pm:

    My $ on Trump told them not to move to Chicago. Anti-Rham all the way. Like it or not, he is the Prez now, and it doesn’t seem he minds being obvious about his tactics.


  28. - West Sider - Thursday, Mar 2, 17 @ 12:31 pm:

    If Anon221 is correct, then Pricewaterhouse is having the worst week for an accounting firm since Arthur Anderson.


  29. - wordslinger - Thursday, Mar 2, 17 @ 12:36 pm:

    Anon221, thanks for the link.

    Multi-billion tax evasion scheme moves to top of list.

    If this goes bad, CAT might end up with some fines and penalties, based on history.

    Let’s hope no one shoplifted a $300 coat. That would be a felony and you could get prison time.


  30. - hisgirlfriday - Thursday, Mar 2, 17 @ 12:43 pm:

    The hits just keep coming for the Central Illinois economy. Ugh.


  31. - Anon221 - Thursday, Mar 2, 17 @ 12:54 pm:

    Forbes Update:

    “On January 30, Caterpillar received a proposed $1 billion in tax increases and penalties from an IRS Revenue Agent’s Report due to profits it earned in non-U.S. subsidiaries, including Caterpillar SARL. The IRS deemed some Caterpillar transactions between subsidiaries as invalid based on doctrines of “substance-over-form” and “assignment of income,” thus creating new taxable income. It also disallowed roughly $125 million of foreign tax credits from financing arrangement between subsidiaries. Caterpillar has been contesting these IRS findings, according to securities filings.”

    https://www.forbes.com/sites/antoinegara/2017/03/02/caterpillars-headquarters-raided-by-federal-authorities-including-doj-and-irs/#5f3d8d906f3a


  32. - Newsclown - Thursday, Mar 2, 17 @ 12:55 pm:

    Well, Cat’s accountants are Price Waterhouse Coopers, so mabey the entire raid is a mistake and the winner is… John Deere.


  33. - Texas Red - Thursday, Mar 2, 17 @ 12:58 pm:

    ==profits it earned in non-U.S.

    Yet another reason for a reduction in us corp tax rates.


  34. - Try-4-Truth - Thursday, Mar 2, 17 @ 1:11 pm:

    - Newsclown - Thursday, Mar 2, 17 @ 12:55 pm:

    Well, Cat’s accountants are Price Waterhouse Coopers, so mabey the entire raid is a mistake and the winner is… John Deere.

    Shut it down. This is the best comment on the internet today. No use trying to come up with a better one.


  35. - Back Tracker - Thursday, Mar 2, 17 @ 1:13 pm:

    -News Clown- that would be hilarious if PWC is the accounting firm!!!!


  36. - Aim to Misbehave - Thursday, Mar 2, 17 @ 1:34 pm:

    Looks like it’s related to alleged tax evasion by attributing profits to its Swiss subsidiary.

    http://www.week.com/story/34650345/exclusive-law-enforcement-searching-for-docs-related-to-cats-swiss-business


  37. - TinyDancer(FKASue) - Thursday, Mar 2, 17 @ 1:38 pm:

    Searching for the cash looted from CAT retiree benefits.


  38. - Illinoisian - Thursday, Mar 2, 17 @ 2:07 pm:

    Alphabet soup + windbreakers are the stuff of nightmares…


  39. - Annonin' - Thursday, Mar 2, 17 @ 2:14 pm:

    Looks like Trump and his regullations busters did not arrive quite soon enough to help Mr Big CAT. Since Forbes reportin’ and subpoena indicates this part of a years long probe gotta wonder why the G needed to “raid”


  40. - wordslinger - Thursday, Mar 2, 17 @ 2:20 pm:

    Annonin, before someone higher up caught wind of it and tried to shut it down?


  41. - Arthur Andersen - Thursday, Mar 2, 17 @ 2:42 pm:

    Hey, watch that now West Sider lol. I’m already upset that someone beat me to the PwC joke.

    Interesting to watch a “raid” where big boxes are wheeled in, not wheeled out. Too late to hit the delete key, fellas.

    The FDIC, I believe, has some jurisdiction over the use of banks in “corrupt transactions.”

    The only guy who can be having a worse day than the new Cat CEO is quite ironically, the United States Attorney General.


  42. - Arthur Andersen - Thursday, Mar 2, 17 @ 2:47 pm:

    word, alternatively there may have been some negotiations about resolving the matter which, er, reached an impasse, and the Feds decided to strengthen their hand.

    No apparent FBI. Interesting.


  43. - TinyDancer(FKASue) - Thursday, Mar 2, 17 @ 3:26 pm:

    =The only guy who can be having a worse day than the new Cat CEO is quite ironically, the United States Attorney General.=

    Which could explain the timing.


  44. - Been There - Thursday, Mar 2, 17 @ 3:51 pm:

    ===-News Clown- that would be hilarious if PWC is the accounting firm!!!!====
    BackTracker it is. They mention them in the Forbes story


  45. - gdubya - Thursday, Mar 2, 17 @ 3:53 pm:

    All part of the Russian interference of our elections. They need to get the Russian biz back, Trump wanted to help.


  46. - ZH - Thursday, Mar 2, 17 @ 4:17 pm:

    That’s quite a comment at 202 pm on ZH


  47. - blue dog dem - Thursday, Mar 2, 17 @ 4:36 pm:

    Why do I get the feeling that a bunch of hourly,middle class union workers will be the only ones who will feel any pain if this goes sour.


  48. - PENSIONS ARE OFF LIMITS - Thursday, Mar 2, 17 @ 4:53 pm:

    The heralded job creators and innovators getting raided by the Feds? Has someone been misleading about their valuable role in society the last decade?


  49. - lost in the weeds - Thursday, Mar 2, 17 @ 5:19 pm:

    Some the jobs created by this job creator indicated by the lettering on the jackets entering the building are policeman, federal agent, IRS employee. Whatever it takes./s


  50. - PENSIONS ARE OFF LIMITS - Thursday, Mar 2, 17 @ 7:10 pm:

    “Some the jobs created by this job creator indicated by the lettering on the jackets entering the building are policeman, federal agent, IRS employee. Whatever it takes./s”

    No snark: Hence the republicans don’t like big government. It’s all coming out for the world to see, but there’s just one problem. Nobody is paying attention. MADIGAN!


  51. - Mama - Thursday, Mar 2, 17 @ 8:30 pm:

    I’m sure Jeff Session, the United States Attorney General, will get CAT off the hook. Don’t worry CATS, Papa will take care of y’all.


Sorry, comments for this post are now closed.


* Reinsdorf says 'I don't want to talk about that' when asked why his ballclub needs another state subsidy
* Isabel’s afternoon roundup
* SUBSCRIBERS ONLY - Fundraiser list
* *** UPDATED x1 *** State's November plan to reduce 'bottlenecks' in migrant shelter/resettlement appears to be making real progress
* In huge blow to Bailey, Trump endorses Mike Bost (Updated)
* Question of the day
* Follow the bouncing ball
* It’s just a bill
* Today's quotables
* Mendoza defends honoring anti-abortion mayor
* 'Never rat on your friends, always keep your mouth shut'
* White Sox make their pitch (Updated x2)
* Open thread
* Isabel’s morning briefing
* End The Natural Gas Ban Now, Aging Gas Lines Are Dangerous
* SUBSCRIBERS ONLY - Supplement to today's edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* SUBSCRIBERS ONLY - EXTRA!
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller