Report accuses Caterpillar of tax fraud to prop up its stock price

A new report commissioned by the federal government accuses Caterpillar Inc. of using tax and accounting fraud to prop up its stock price, according to a report late Tuesday.

“Caterpillar did not comply with either U.S. tax law or U.S. financial reporting rules,” the report said, according to the New York Times, which obtained a copy of it. “I believe that the company’s noncompliance with these rules was deliberate and primarily with the intention of maintaining a higher share price. These actions were fraudulent rather than negligent.”

No charges have been filed against the company, and it is unclear if or when federal authorities will act against the construction and mining-equipment giant.

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