Local News

A collection of our coverage on the federal investigation into Caterpillar's overseas tax strategy.

DEVELOPING: Federal Agents Execute Search Warrant Inside Caterpillar

WCBU | By H. Wayne Wilson

Published March 2, 2017 at 10:47 AM CST

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The scene in front of the Caterpillar World Headquarters building throughout the day. Dozens of Federal Agents wheeled large black totes into building AB, AD, and Morton facilities all afternoon.

Cass Herrington / Peoria Public Radio

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The scene in front of the Caterpillar World Headquarters building at 11:42 A.M.

used with permission

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An official parking placard visible inside the windshield of a car parked in front of Caterpillar headquarters on Adams Street in downtown Peoria today.

Cass Herrington / Peoria Public Radio

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Federal agents briefly grab a drink of bottled water Thursday afternoon.

Cass Herrington / Peoria Public Radio

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At least a dozen cars and several dozen agents were visible along Adams Street during the late morning and early afternoon hours.

Peoria Public Radio

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Caterpillar North America Regional Security Director Steve Settingsgaard is visible during the execution of Thursday's search warrant at Caterpillar's headquarters in downtown Peoria.

Peoria Public Radio

Multiple Federal Law Enforcement agencies executed search warrants at 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.

Caterpillar North America Regional Security Director Steve Settingsgaard is visible during the execution of Thursday's search warrant at Caterpillar's headquarters in downtown Peoria.

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.

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