Caterpillar unit is subject of U.S. criminal probe -filing

Reuters

By Jessica Dye

Nov 1 (Reuters) - Federal prosecutors in California areinvestigating a unit of Caterpillar Inc for potentialviolations of environmental law and other alleged improperbusiness practices, the company disclosed in a regulatory filingFriday.

Peoria, Illinois-based Caterpillar said in the filing thatits Progress Rail Services Corp subsidiary received a grand jurysubpoena on Oct. 24 from the U.S. District Court for the CentralDistrict of California. The U.S. attorney's office in thatdistrict told Progress Rail it is a target of a criminalinvestigation related to the subpoena, the filing said.

The subpoena requested documents and other information fromProgress Rail, Caterpillar and Progress Rail subsidiary UnitedIndustries Corp in connection with allegations that ProgressRail conducted unnecessary or improper rail car inspections andthat it failed to properly dispose of equipment, parts, toolsand other items, the filing said.

Caterpillar said it was cooperating with authorities,according to the filing.

A spokesman for the company and the U.S. attorney's officedid not immediately return a request for comment Friday evening.

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