The Wall Street Journal reported on Thursday that United Industries, a unit within Caterpillar’s Progress Rail division, accepted a plea deal with federal prosecutors and admits that its employees made fraudulent or unnecessary repairs to freight cars that visited the company’s shops near the Port of Long Beach, Calif.
The Wall Street Journal reports that United employees used hammers to break brake components, chisels to damage wheel treads, and chains to yank loose safety appliances.
To conceal evidence of the damage, workers even dumped certain parts into the Pacific Ocean, prompting a federal charge for dumping refuse in navigable waterways.
The newspaper reports that the dumping occurred in 2008 and 2009 while the criminal investigation first came to light in 2013.
More information is available online.
They might even put this division on the market. Also would like to know how this came to light.
How stupid can one be?No wonder Catepillar hasn t gained anything on their main competitor in diesel locomotives.Doing trivia non sense isn t going to get the job done either.
The closing of the Caterpillar purchase of Progress Rail was March 28, 2005. These transgressions occurred at a sub-division of Progress Rail early in the transition. Does anyone think that this reflects the true business culture of the parent company, Caterpillar Inc? I can say with certainty that it does not represent how Caterpillar does business and services it many customers.
It ticks me off that stockholders take it on the chin and no one ever goes to jail in these cases
Hey! Let’s give ’em a big reduction in their income tax rate too. That’ll more than offset the cost of the fine.
As long as management made their numbers and got a bonus plus they improved the investors rate of return there in nothing wrong with that.
Makes you wonder what kind of “hanky-panky” is going on at the earth moving end of Caterpillar. That’s their “bread and butter” business!
This has been common on a RIP track for years.
Go out in the yard and knock reflectors of TOFC trailers, then replace them and bill the owner. If your workers are idle, make some work.
As if the rail division isn’t already stressed with lower locomotive orders, now this.
Their is really only one way to hurt them – in the wallet. Don’t send freight cars there for repairs anymore, and don’t buy any of their locomotives. Watch how quickly they will go bankrupt and go out of business.
Such silence from the usual suspects who go on and on about how the graffiti “thugs” are destroying the industry. Didn’t see many peeps from them about the noncreosoted crossties painted black that were sold to the NS.
As Gomer Pyle would say, SHAME SHAME SHAME
As is probable, the senior management have a particular political orientation….or perhaps a moral one; so to say: “let’s hope we don’t get caught.” It is called risk taking, haha.
Mr. Pratt: The key point is “employees made fraudulent or unnecessary repairs….” Who knows, maybe paychecks were based on productivity? To slam American business and Caterpillar in one swipe is, at best, misdirected.
I wonder how the criminal activity came to light 4-5 years after it happened.
That a huge business like Caterpillar can and is involved in this underhand business practice just demonstrates why business is unable to police itself and have to deal with ‘onerous regulations!’ This is arrogant fraud & corruption,. BUT, never mind, it is all Ok these days, anything goes, business is sacrosanct in the, now fully sanctioned ,’Big Businessocracy’ All will be forgiven in the name of more profit for the shareholders, and to the wall with the unwitting suckers.,