Caterpillar Rail Unit Caught In Scam

Caterpillar Rail Unit Caught In Scam

Posted in the Erie Forum

Stu Pedaso

Warren, OH

#1 Nov 22, 2013
Nov 22 (Reuters)- A unit of Caterpillar Inc is being probed by federal investigators to determine if it had dumped train parts into the ocean off California as part of a scam to charge customers for parts they didn't need, the Wall Street Journal reported.

Investigators are probing whether Progress Rail Services Corp was dumping brake parts and other items into the sea near the Port of Long Beach, the paper said, citing people familiar with the matter.().

The dumping was part of an effort to conceal evidence that Progress was charging owners of rail equipment for replacing parts that were still in good shape, the paper said.

Caterpillar said in a regulatory filing on Nov. 1 that Progress Rail had received a subpoena from a U.S. federal court in California related to the investigation.
Withheld

London, UK

#2 Nov 22, 2013
...And yet, people at the Erie GE Plant are still being laid off.
#nonrunner
Dick Weed

United States

#3 Nov 22, 2013
Stu Pedaso wrote:
Nov 22 (Reuters)- A unit of Caterpillar Inc is being probed by federal investigators to determine if it had dumped train parts into the ocean off California as part of a scam to charge customers for parts they didn't need, the Wall Street Journal reported.
Investigators are probing whether Progress Rail Services Corp was dumping brake parts and other items into the sea near the Port of Long Beach, the paper said, citing people familiar with the matter.().
The dumping was part of an effort to conceal evidence that Progress was charging owners of rail equipment for replacing parts that were still in good shape, the paper said.
Caterpillar said in a regulatory filing on Nov. 1 that Progress Rail had received a subpoena from a U.S. federal court in California related to the investigation.
That is funny s%!t right there ! What will GE do now to be competitive with that ?
nonyas

Wyanet, IL

#4 Dec 10, 2013
anyone with intimate knowledge of this...assuming there is some credibility of the claim, but can't find any info on the issue.
Erie Realist

Joplin, MO

#5 Dec 11, 2013
Caught in Scam???? Not yet as an investigation is being made but no evidence yet has been offered as proof. Innocent until proven guilty!
Progress Rail is a locomotive & railcar repair company with 90+ outlets & is headquartered in Albertville Alabama.
There is no doubt overcharging of rail customers was once rampant in the repair business ......but there is no evidence to prove this is or was the case at Progress Rail especially since Caterpiller bought the company for 800,000,000 in 2006.
Right now this is a fishing expedition which may or may not prove too be true.
The Reuters story did state indictments are not usually forthcoming from these investigations.
nsman

Corona, CA

#6 Dec 11, 2013
caught in a scam !!! Is correct... Sorry to burst your bubble but I worked for progress rail service for 8 years and I was asked to take parts that were not bad almost everyday. I was told if we don't hit our billing numbers in billing every month that they were going to cut jobs and start making us go home early ... Not sure if your aware but they were cought doing this about 2 or 3 years ago but it was kept more on the hush hush side ...
I can guarantee you there going to find parts and probably more than they expect to find ...

y
Withheld

London, UK

#7 Dec 12, 2013
nsman wrote:
caught in a scam !!! Is correct... Sorry to burst your bubble but I worked for progress rail service for 8 years and I was asked to take parts that were not bad almost everyday. I was told if we don't hit our billing numbers in billing every month that they were going to cut jobs and start making us go home early ... Not sure if your aware but they were cought doing this about 2 or 3 years ago but it was kept more on the hush hush side ...
I can guarantee you there going to find parts and probably more than they expect to find ...
y
If your claim is true, then I assume you blew the whistle on this operation? If not, then I'd assume you will be rightfully charged when charges are filed?
Stu Pedaso

Warren, OH

#8 Dec 12, 2013
Hmmm. "no evidence yet has been offered" = "there is no evidence" = "this is a fishing expedition".

Slippery Slope? That's a freakin' Bobsled Course!
nsman

Perris, CA

#9 Dec 13, 2013
Withheld wrote:
<quoted text>
If your claim is true, then I assume you blew the whistle on this operation? If not, then I'd assume you will be rightfully charged when charges are filed?
Well if you read what i wrote you would see that it says "ASKED TO STEAL PARTS" never said I did and common sense would tell you that's why I no longer am employed by them... And as for me blowing the whistle ...not what i do everyone that works there new some day or another they were going to get caught like I said in my other post this is not the first time this has happened the Federal Railroad Administration has been on progress they would not open an investigation into the company and make it public if they had no info.
Withheld

London, UK

#10 Dec 14, 2013
nsman wrote:
<quoted text>
Well if you read what i wrote you would see that it says "ASKED TO STEAL PARTS" never said I did and common sense would tell you that's why I no longer am employed by them... And as for me blowing the whistle ...not what i do everyone that works there new some day or another they were going to get caught like I said in my other post this is not the first time this has happened the Federal Railroad Administration has been on progress they would not open an investigation into the company and make it public if they had no info.
You said you were asked to steal parts, fine. Common sense does not say you chose not to.

Also, you don't blow the whistle, as that's not "what you do". Yet, you're singing like a canary here?

I call BS
nonyas

Princeton, IL

#11 Dec 27, 2013
why BS? lots of people witness lots of unscrupulous activitites by employers and don't blow the whistle...lots of reasons for it as well.

The OP claims seem consistent with the general practice of the railcar industry.

Even if there are no indictments, that doesn't mean nothing nefarious was going on. Maybe it can be PROVEN, maybe not, maybe the right political contribution gets made and the whole thing gets dropped, who knows?

Fishing expedition? I doubt, there is likely something going on here...doesn't mean people and major corporations don't get away with crimes. Happens all day, every day.
Withheld

London, UK

#12 Dec 27, 2013
nonyas wrote:
why BS? lots of people witness lots of unscrupulous activitites by employers and don't blow the whistle...lots of reasons for it as well.
The OP claims seem consistent with the general practice of the railcar industry.
Even if there are no indictments, that doesn't mean nothing nefarious was going on. Maybe it can be PROVEN, maybe not, maybe the right political contribution gets made and the whole thing gets dropped, who knows?
Fishing expedition? I doubt, there is likely something going on here...doesn't mean people and major corporations don't get away with crimes. Happens all day, every day.
BS because the person claimed he was asked to do it, refused to do it, is not employed by the company due to his decision and the position they allegedly placed him in, & is posting about it here.

If his beliefs were that strong, topix would not be the place he's blowing the whistle. He'd be offering up evidence or testimony to the proper people - and probably would have done so long ago instead of making stories up to post on here.
Airbrakeoperator

United States

#13 Nov 6, 2014
It is common knowledge in the industry this company does this. They make new railcar parts also.its a conflict of interest .
They break part on customers cars, cut the parts up up or destroy them somehow(throw them in the ocean) or if they are in a scrap dumpter the dumpsters are emptied often. Then they sell them new progress rail parts.
Its hard to prove because the evidence is continously and quickly destroyed.
Phx girl

Phoenix, AZ

#14 Nov 6, 2014
Airbrakeoperator wrote:
It is common knowledge in the industry this company does this. They make new railcar parts also.its a conflict of interest .
They break part on customers cars, cut the parts up up or destroy them somehow(throw them in the ocean) or if they are in a scrap dumpter the dumpsters are emptied often. Then they sell them new progress rail parts.
Its hard to prove because the evidence is continously and quickly destroyed.
You don't know anything about the inner workings of CAT.
Nsman

Chicago, IL

#15 Nov 7, 2014
just a little update on the progress rail service BNSF has pulled the contract and is no longer letting progress rail work on there property all progress rail ramps will be taken over as of May 2015 as of now San Bernardino and Mira Loma yards have been taken over by TTX car shop. This is the out come of the investigation and is the sole reason why they our off the property... And I am only speaking of the car department. Also a little info it's not catapillar runing progress they were and our still there own company with there own upper management catapillar just bought the company as a so called investment but leave the company to be ran by the progress upper management. Witch the company was making catapillar money intill they finally got caught doing what they do best stealing....
thom eztok

Pittsburgh, PA

#16 Nov 7, 2014
I drive a White GMC with a CAT plate on the front and my rear window is all CAT. Check me out when I'm plowing. Fair rates and I don't tear up the grass
doug wilson

Erie, PA

#17 Nov 7, 2014
shut up thom, no one likes you anymore, i found new friends and no one needs you
thom eztok

Pittsburgh, PA

#18 Nov 7, 2014
Doug, are you drinking again? you know how you get. I'm coming over and sorting this out!
doug wilson

Erie, PA

#19 Nov 7, 2014
stay away you a holwse

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