Progress Rail Caught in Scam

[CPM500]

Yes, an old story-but with recent updates. Don't forget, in America even corporations are innocent until proven guilty.

There has been some blowback...

 

http://www.topix.com/forum/city/erie-pa/TI4GU8FF6JHCL0EUC

[Overmod]

CPM500

Yes, an old story-but with recent updates.

http://www.topix.com/forum/city/erie-pa/TI4GU8FF6JHCL0EUC

 

To save readers a little time, the objective new material in that thread says (in the original poster's words and spelling):

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...

[Rader Sidetrack]

Here is a related article from a site that  is seen as having a little more credibility than Topix.com:

Caterpillar Unit Loses Some Railcar-Repair Contracts

TTX Takes Over From Progress Rail at Several Railroad Hubs in California

The switch comes in the midst of a federal grand jury investigation in California, disclosed last year, into whether Progress Rail charged railcar owners for repairs that weren't necessary and improperly disposed of discarded parts, according to people familiar with the probe. Caterpillar has said it is cooperating with the investigation.

 

http://online.wsj.com/articles/caterpillar-unit-loses-some-railcar-repair-contracts-1409846670

[blue streak 1]

Catepillar protects its reputation very much. What will happen to Progress employees ?  Will there be some quiet resignations or will they be thrown under the bus ?  Personally would do an internal investigationa and turn over results to FEDs.

[samfp1943]

I am sure this story is very interesting, but is hidden from those who do not pay to subscribe to the WSJ...

   One thing, I would think, is that if this story gains traction ( The" SCAM" activity).. The Feds will levy fines, and "Heads will roll" within the Caterpillar Corporate Structure...     The Caterpillar Corp. might take a financial hit, but you can be they will go thru a "Corporate Culture Catharsis", as to the whole car repairing scam incidents. They will show positive actions as to remedying the illicite activities, even to the point of possibly selling off that segment of the business(?)  My guess.  

[Buslist]

Rember the Feds interest here is from brake shoes etc. being thrown into the water in and around Long Beach. The false repairs/billing is an AAR issue.