FDIC and IRS Raid Caterpillar's Peoria Headquarters - Polidicks

[quote]Federal law enforcement officials executed a search warrant Thursday at three central Illinois facilities of Caterpillar, one of the largest construction equipment manufacturers in the world. Caterpillar spokeswoman Corrie Heck Scott said in an email that the company is cooperating with law enforcement but did not provide any further details. Sharon Paul, a spokeswoman for the U.S. Attorney's office in Springfield, said "federal law enforcement activity" was being conducted at three Caterpillar locations, including the corporate headquarters in Peoria and facilities in East Peoria and Morton. News video shows federal agents — some wearing jackets that read IRS Special Agent and Police — wheeling large boxes into a Caterpillar building. Shares of Caterpillar, which have risen 35 percent over the past year, went into steep decline just before noon as word of the raid on company headquarters and other facilities began to spread, falling almost 5 percent within an hour to a new low for 2017. Paul said the agencies involved included the Internal Revenue Service's criminal investigation unit, the U.S. Department of Commerce Office of Export Enforcement and the Federal Deposit Insurance Corp.'s office of inspector general. She declined to comment further. In January, the company announced it plans to move its global headquarters and about 300 top jobs to the Chicago area after decades in Peoria. Caterpillar also scrapped plans to build a new headquarters in downtown Peoria, which is located about 175 miles southwest of Chicago.[/quote] [url=http://abcnews.go.com/US/wireStory/federal-agents-raid-caterpillar-offices-northern-illinois-45860528]ABC News[/url]

Lol Steep decline my ass, more like momentary rollercoaster drop. They dropped from $98 a share to $93 a share in about an hour and have since risen and leveled out at about $95 before market close. That's literally only like a 4.3% drop and it ended the day having leveled out. If they kept dropping all the way to close then yeah I'd say maybe sell CAT just because speculative market is fucking shit up and you can serve to buy more on the rebound, but for now there's nothing major happening yet and they leveled out not much lower than their high within two hours and stayed there with slight gains until close. I'd definitely be setting an exit strategy on CAT right now though if I had any shares of it.

The biggest shock to me is that this whole time CAT was short for Caterpillar.

[QUOTE=A B.A. Survivor;51901800]The biggest shock to me is that this whole time CAT was short for Caterpillar.[/QUOTE] Didn't you ever play with Tonka Trucks as a child?

[url]http://www.pjstar.com/news/20170302/law-enforcement-officials-raid-caterpillar-offices[/url] This article has a bit more background on this. Apparently it's related to allegations that they tried to hide their profits behind Swiss bank accounts. As a Peoria native and someone who literally just interviewed to be an engineer with them, this makes me sad.

[QUOTE=mcharest;51902007]Didn't you ever play with Tonka Trucks as a child?[/QUOTE] Back in my day they were made of metal!

[QUOTE=A B.A. Survivor;51901800]The biggest shock to me is that this whole time CAT was short for Caterpillar.[/QUOTE] The biggest shock is that the IRS is taking action against a major corporation. They must be low on funding.

[QUOTE=Splash Attack;51902017][url]http://www.pjstar.com/news/20170302/law-enforcement-officials-raid-caterpillar-offices[/url] This article has a bit more background on this. Apparently it's related to allegations that they tried to hide their profits behind Swiss bank accounts. As a Peoria native and someone who literally just interviewed to be an engineer with them, this makes me sad.[/QUOTE] i work for a multinational that reminds me every day about safety and enviromental stewartship...that has several superfund sites as well as a huge settlement for knowingly poisoning workers in one of their factories for decades and is also a member of ALEC which stands diametrically opposed to their corporate values... corporate culture vs work culture i guess

[QUOTE=Splash Attack;51902017][url]http://www.pjstar.com/news/20170302/law-enforcement-officials-raid-caterpillar-offices[/url] This article has a bit more background on this. Apparently it's related to allegations that they tried to hide their profits behind Swiss bank accounts. As a Peoria native and someone who literally just interviewed to be an engineer with them, this makes me sad.[/QUOTE] Wait wait what, they were literally using [I]Swiss[/I] bank accounts? I thought pressure from the Obama administration had convinced Switzerland to [I]severely[/I] overhaul their banking laws to prevent Swiss banks from being used for tax evasion.

[QUOTE=certified;51903610]Wait wait what, they were literally using [I]Swiss[/I] bank accounts? I thought pressure from the Obama administration had convinced Switzerland to [I]severely[/I] overhaul their banking laws to prevent Swiss banks from being used for tax evasion.[/QUOTE] Well not literally. They shipped some parts there and I'm guessing the sketchy part has to do with the taxes they might not have paid on them. It's worth mentioning that this goes back to 2009 [QUOTE]In his complaint against Caterpillar, Schlicksup alleged the company sold and shipped spare parts globally from its warehouse in Morton while attributing at least $5.6 billion of profits from those sales to a unit in Geneva, Switzerland. This scheme, which operated from 2000 to 2009, was known as the "Swiss structure." Caterpillar SARL is based in Geneva[/QUOTE]