Informant Read online

  CONTENTS

  PROLOGUE

  BOOK ONE

  VERGE OF TRUTH

  CHAPTER 1

  CHAPTER 2

  CHAPTER 3

  CHAPTER 4

  CHAPTER 5

  BOOK TWO

  HONOR AMONGST THIEVES

  CHAPTER 6

  CHAPTER 7

  CHAPTER 8

  CHAPTER 9

  CHAPTER 10

  CHAPTER 11

  CHAPTER 12

  BOOK THREE

  NOTHING SIMPLE IS SIMPLE

  CHAPTER 13

  CHAPTER 14

  CHAPTER 15

  CHAPTER 16

  CHAPTER 17

  CHAPTER 18

  CHAPTER 19

  EPILOGUE

  NOTES AND SOURCES

  ACKNOWLEDGMENTS

  More praise for

  THE INFORMANT

  “READS LIKE AN ED McBAIN CRIME NOVEL . . . within a few pages the reader is hooked. I knew how the story ended, but I still couldn’t put the book down.’’

  —New York Times (daily review)

  “A REMARKABLE, FASCINATING AND FAST-PACED BOOK . . . The strange details that emerge would be laughable in the context of a novel. In The Informant, they just leave a reader breathlessly amazed.’’

  —Portland Oregonian

  “A NEAR MASTERPIECE . . . thrilling, far-reaching, and significant . . . a fast-paced, accessible, race car of a book.’’

  —Salon.com

  “I WOULD SAY THE INFORMANT READS LIKE GRISHAM, ONLY NOBODY EVER COULD HAVE INVENTED THESE CHARACTERS. A tale this riveting and this strange could only have been built from truth.”

  —Sherry Sontag, coauthor, Blind Man’s Bluff

  “SUSPENSEFUL . . . a book that can double as an attractive movie proposal.”

  —Washington Post

  “A GRIPPING READ . . . ONE OF THE MOST COMPELLING BUSINESS NARRATIVES SINCE BARBARIANS AT THE GATE. The Informant offers an inside picture of a part of the corporate world that outsiders almost never see—one full of covert meetings, secret codes, and industrial espionage. Usually the pulp of airport fiction, here such shadowy doings become the stuff of sound investigative nonfiction . . . A great cops-and-robbers drama—leavened by occasional touches of screwball comedy . . . This is box-office material, and Eichenwald has written a book that reads a lot like a screenplay.”

  —Business Week

  “A THRILLER, filled with espionage, double-crosses, and deceit, where nothing is quite what it first seems.’’

  —Dateline NBC

  “A COMPELLING NARRATIVE . . . a business book for Grisham readers.’’

  —Chicago Tribune

  “A FASCINATING TALE . . . a cohesive narrative of a corporation that placed itself above the law, an ambitious executive who preferred lies over the truth, and determined FBI agents whose hard work was nearly jeopardized not only by their informant but also by their bosses at the Department of Justice.’’

  —St. Petersburg Times

  “THE INFORMANT IS SUPERB REPORTING in the service of a great story, one with the drama and suspense of a Le Carré novel. Set squarely in the American heartland, delving into the inner sanctum of a global corporation, it explores the shifting boundaries of truth and deception, loyalty and betrayal. It is a remarkable achievement.”

  —James B. Stewart, author, Den of Thieves and Blind Eye

  “A MESMERIZING STORY . . . a thrilling read.’’

  —Washington Monthly

  “WHAT A STORY—AND WHAT AN INFORMANT.’’

  —St. Louis Post-Dispatch

  “IN THIS TRUE ACCOUNT THAT HAS MORE SPY ACTION THAN SOME TOM CLANCY NOVELS, we get double-crossing, dirty dealing, lying, conniving, and wiretapping . . . The Informant is more deceitful and more spellbinding than many works of fiction.”

  —Bookpage

  “A REAL PAGE-TURNER.’’

  —Ira Glass, host, This American Life

  “THIS GRIPPING STORY of the price-fixing case against Archer Daniels Midland is the next A Civil Action.’’

  —The Industry Standard

  “THE INFORMANT IS EPIC IN SCOPE, a tale of human foibles—of greed, deceit, and arrogance—and also of the search for truth. Eichenwald has told it masterfully, with the narrative drive of a novel.”

  —Jonathan Harr, author, A Civil Action

  “LIKE EVERYONE ELSE WHO HAS RAVED about The Informant, I could not stop reading it . . . Like John Grisham’s The Firm, The Informant is destined for the big screen . . ”

  —ABA Journal

  “THE TWISTS AND TURNS OF THIS NONFICTION WORK LEAVE MANY THRILLERS IN THE DUST. Eichenwald’s spare prose and journalistic eye for detail make the pages fly.”

  —David Baldacci, author, Absolute Power and Saving Faith

  “A DILLY OF A BOOK . . . reads like John Grisham on acid, and once begun, you can’t put it down.”

  — Liz Smith, in her syndicated column

  “A COHESIVE, JAW-DROPPING NARRATIVE . . . a compulsively readable legal procedural, The Informant has earned comparisons to the works of John Grisham. But with its dizzying array of subplots, twists, and political maneuvers, the book is more like Grisham’s entire oeuvre compressed into six hundred pages.”

  —The Onion

  “CRITICS ARE THRILLED with this revival of a genre they claim has been all but dead since the early ‘80s: investigative nonfiction set in corporate America. By all accounts, Eichenwald’s tale of the Archer Daniels Midland price-fixing scandal, which he covered for the New York Times, is a gripping read.’’

  —Slate

  “THE INFORMANT IS MASTERFUL . . . a suspenseful, engrossing story . . . were this story told as fiction, no one would believe it.

  —The DailyDeal.com

  “A TERRIFIC BOOK . . . a transfixing tale . . . mesmerizes you immediately with a well-crafted filigree of detail . . . the book resembles a tightly constructed novel. It’s full of parallel plots that develop independently, occasionally crisscrossing or passing in the night until the inexorable collision.”

  —Star Tribune (Minneapolis, Minn.)

  THE

  INFORMANT

  * * *

  A TRUE STORY

  * * *

  KURT EICHENWALD

  BROADWAY BOOKS NEW YORK

  To ADAM, RYAN, and SAM,

  my wonderful and beloved boys.

  And to my wife, THERESA,

  Always.

  You too must not count overmuch

  on your reality as you feel it today,

  since, like that of yesterday,

  it may prove to be an illusion tomorrow.

  —LUIGI PIRANDELLO

  Six Characters in Search of an Author

  AUTHOR’S NOTE

  This book is based on about eight hundred hours of interviews with more than one hundred participants in these events, as well as tens of thousands of confidential corporate and government records, including secret grand jury testimony. Much of the dialogue comes from publicly unavailable transcripts of secret recordings made by a cooperating witness with the FBI over more than two years. Other conversations are based on contemporaneous records of the events or the best recollections of participants. While I have disguised the identities of one witness and of some people mentioned in passing on the tapes, everything else in this book—no matter how unbelievable—is real.

  Every scene, every name, every crime.

  And every lie.

  THE MAIN CHARACTERS

  WITH THE ARCHER DANIELS MIDLAND COMPANY

  DWAYNE ANDREAS, chairman and chief executive

  MICHAEL “MICK” ANDREAS, vice-chairman

  JAMES RANDALL, president

  TERRANCE “TERRY” WILSON, president, corn processing

>   BARRIE COX, vice president, food additives

  G. ALLEN ANDREAS, vice president and chief executive, ADM International

  RICHARD REISING, general counsel

  MARK CHEVIRON, head of security

  REINHART RICHTER, president, ADM Mexico

  HOWARD BUFFETT, assistant to the chairman

  JAMES SHAFTER, of counsel

  RONALD FERRARI, former product manager, protein specialties

  IN THE BIOPRODUCTS DIVISION

  MARK WHITACRE, president

  MARTY ALLISON, vice president

  SIDNEY HULSE, vice president

  DAVID PAGE, director of market development

  ELIZABETH TAYLOR, secretary

  ON THE SPECIAL COMMITTEE OF THE BOARD

  BRIAN MULRONEY, former prime minister of Canada

  F. ROSS JOHNSON, former chairman, RJR Nabisco

  JOHN DANIELS, former chairman, Archer Daniels Midland

  RAY GOLDBERG, professor of agriculture, Harvard Business School

  ADVISORS TO DWAYNE ANDREAS

  ROBERT S. STRAUSS, partner, Akin, Gump, Strauss, Hauer & Feld, Washington, D.C.

  ZEV FURST, principal, First International

  WITH THE FEDERAL BUREAU OF INVESTIGATION, WASHINGTON, D.C.

  LOUIS FREEH, Director

  WILLIAM ESPOSITO, Assistant Director, Criminal Investigative Division

  NEIL GALLAGHER, Deputy Assistant Director of the Criminal Investigative Division

  EDWARD HERBST, Supervisory Special Agent

  ALIX SUGGS, Supervisory Special Agent

  WITH THE RESIDENT AGENCY, DECATUR, IL

  BRIAN SHEPARD, Special Agent

  WITH THE RESIDENT AGENCY, CHAMPAIGN, IL

  JOE WEATHERALL, Special Agent

  WITH THE FIELD OFFICE, SPRINGFIELD, IL

  ROBERT HERNDON, Special Agent

  DONALD STUKEY, Special Agent in Charge (SAC)

  JOHN HOYT, Assistant Special Agent in Charge (ASAC)

  DEAN PAISLEY, Supervisory Special Agent

  KATE KILLHAM, Supervisory Special Agent

  KEVIN CORR, Principal Legal Advisor

  THOMAS GIBBONS, Special Agent

  WITH THE FIELD OFFICE, CHICAGO, IL

  MICHAEL BASSETT, Special Agent

  ANTHONY D’ANGELO, Special Agent

  ED WORTHINGTON, Assistant Special Agent in Charge (ASAC)

  ROBERT GRANT, Supervisory Special Agent

  WITH THE FIELD OFFICE, MOBILE, AL

  CRAIG DAHLE, Special Agent

  WITH THE UNITED STATES DEPARTMENT OF JUSTICE, WASHINGTON, D.C.

  JANET RENO, Attorney General

  JAMIE GORELICK, Deputy Attorney General

  SETH WAXMAN, Associate Deputy Attorney General

  IN THE ANTITRUST DIVISION, WASHINGTON, D.C.

  ANNE BINGAMAN, Assistant Attorney General

  GARY SPRATLING, Deputy Assistant Attorney General

  IN THE ANTITRUST DIVISION, MIDWEST FIELD OFFICE, CHICAGO, IL

  JAMES GRIFFIN, Chief

  MARVIN PRICE, Assistant Chief

  ROBIN MANN, attorney

  JAMES MUTCHNIK, attorney

  WITH THE UNITED STATES ATTORNEY’S OFFICE, SPRINGFIELD, IL

  FRANCES HULIN, United States Attorney

  BYRON CUDMORE, First Assistant United States Attorney

  RODGER HEATON, Assistant United States Attorney

  JOSEPH HARTZLER, Assistant United States Attorney

  WITH THE UNITED STATES ATTORNEY’S OFFICE, CHICAGO, IL

  SCOTT LASSAR, First Assistant United States Attorney

  IN THE FRAUD SECTION, WASHINGTON, D.C.

  MARY SPEARING, chief

  DONALD MACKAY, attorney

  JAMES NIXON, attorney

  PETER CLARK, attorney

  WITH THE DISTRICT ATTORNEY’S OFFICE, ZURICH

  FRIDOLIN TRIET, Investigating Magistrate

  WITH THE LAW FIRMS

  AT WILLIAMS & CONNOLLY, WASHINGTON, D.C.

  AUBREY DANIEL, partner

  BARRY SIMON, partner

  AT SIMPSON THACHER & BARTLETT, NEW YORK, NY

  RICHARD BEATTIE, chairman

  CHARLES KOOB, partner

  REPRESENTING THE INDIVIDUALS

  JOHN BRAY, King & Spaulding, Washington, D.C.

  REID WEINGARTEN, Steptoe & Johnson, Washington, D.C.

  JAMES EPSTEIN, Epstein, Zaideman & Esrig, Chicago, IL

  BILL WALKER, solo practitioner, Granite City, IL

  JOHN DOWD, Akin, Gump, Strauss, Hauer & Feld, Washington, D.C.

  SHELDON ZENNER, Katten Muchin & Zavis, Chicago, IL

  WITH AJINOMOTO INC., TOKYO

  KAZUTOSHI YAMADA, managing director

  HIROKAZU IKEDA, general manager, feed additives

  KANJI MIMOTO, deputy general manager, feed additives

  KOTARO FUJIWARA, engineer

  WITH THE EUROPEAN DIVISION, EUROLYSINE

  ALAIN CROUY, president

  JACQUES CHAUDRET, vice president

  WITH A EUROPEAN AFFILIATE, ORSAN

  PHILIPPE ROLLIER, president

  WITH KYOWA HAKKO KOGYO CO. (BIOKYOWA), TOKYO

  MASARU YAMAMOTO, general manager, bioproducts

  WITH SEWON CO. LTD./MIWON (SEWON AMERICA), SEOUL

  JHOM SU KIM, president, Sewon America

  WITH CHEIL JEDANG LTD., SEOUL

  JOON MO SUH, executive

  WITH KROLL ASSOCIATES

  JULES KROLL, principal

  ANDREW LEVETOWN, investigator

  THE INDUSTRY CONSULTANT

  DAVID HOECH, president, Global Consultants, Hallandale, FL

  THE ASSOCIATES

  GINGER WHITACRE, wife of Mark Whitacre

  RUSTY WILLIAMS, groundskeeper for the Whitacre family

  BEAT SCHWEIZER, money manager

  DR. DEREK MILLER, M.D.

  PROLOGUE

  June 27, 1995—Decatur, IL

  The Country Club of Decatur loomed ahead, and Brian Shepard slowed the pace of his 1994 Dodge Dynasty. Beside him in the passenger seat, Bob Herndon sat in silence, gazing at the club through the windshield. Herndon checked his watch again, although he already knew the time, 6:00 P.M. Right on schedule.

  Shepard turned onto the club’s inclined driveway, heading to the parking lot as another car followed him up the hill. Passing the club on the right, the midsize sedans maneuvered into two parking spaces, out of place amid the array of Mercedes and BMWs.

  Without a word, Shepard and Herndon popped open their doors and watched as Kevin Corr emerged from the second car. In an instant, Corr joined them, and the three men walked in step toward the club. Despite their differing ages and backgrounds, the three somehow looked strikingly similar. They wore short trimmed hair and dressed in dark suits with dark dress shoes. Their suit jackets fit loosely, masking the stainless steel automatic pistols that they carried.

  They turned away from the small crowd milling outside near the pro shop. As expected, most every club member was there, enjoying the food and ambience of a night at the grill. The upstairs dining hall was sure to be virtually empty, a refuge for local businessmen looking for a quiet place to talk. It was perfect for the plan. Tonight there would likely be no witnesses to get in the way.

  The three men headed toward the club’s canopy-covered entryway. On the horizon, the sun threw a deep reddish glow across the Illinois countryside. Even here, far from the giant milling factories that dominate Decatur, a pungent aroma hung in the air. Newcomers to town usually found the smell disagreeable. But for Decatur residents, the ever-present odor produced by drying corn feed and toasting soymeal at the powerful Archer Daniels Midland Company had become part of the landscape, no different than the trees or the sky. Locals often joked it was just the smell of money being made.

  The men pushed open the club’s glass door, walking left toward the dining hall. The room was not Decatur’s largest meeting place, but it was certainly among the most elegant, with chandeliers, a grand fireplace, and oceans of white
linen draped across circular tables. This night, only one table was occupied, on the far side of the room, where three executives were chatting over drinks. Two of the men were well known in town—even their waitress recognized them as Terry Wilson and Mark Whitacre from the nearby ADM headquarters.

  Corr waited in a foyer outside the dining hall as Shepard and Herndon walked briskly toward the businessmen. The diners barely noticed the approaching men until they came to a stop at their table.

  “Mr. Wilson? Mr. Whitacre?’’ Herndon said.

  The youngest of the diners, a blond man in his mid-thirties with a moustache and a baby face, looked at Herndon with a puzzled expression.

  “Yes?’’ he said. “I’m Mark Whitacre.’’

  Herndon and Shepard reached inside their jackets, bringing out matching leather cases. Two gold shields flashed in the light of the dining hall.

  “I’m Bob Herndon, and I’m an FBI agent. This is Brian Shepard; he’s also an FBI agent. We need to talk to both of you privately, right now.’’

  Wilson, in his fifties with white hair, set down his glass of Dewar’s and water. “What’s this all about?’’

  “Well, Mr. Wilson, the best thing would be if Agent Shepard and I could talk to you over here,’’ Herndon said, pointing to the foyer where Corr was waiting.

  Wilson glanced across the table at his second dinner partner, Steven Yu, a visiting executive from ADM’s division in China. With an almost imperceptible shrug, Wilson excused himself. He and Whitacre began to stand when Wilson abruptly stopped.

  “Do I need an attorney?” he asked.

  “That’s up to you,’’ Herndon said. “You’re not under arrest, you’re not in custody, you can leave any time. But you may want to hear what we have to say.’’

  Wilson nodded. He and Whitacre left the dining hall, leaving behind their bewildered colleague.

  As they reached the foyer, Herndon introduced Corr. “Agent Corr, why don’t you find a place to talk to Mr. Whitacre?’’

  Corr looked at Whitacre. “Is that all right with you, sir?’’

  Whitacre nodded, his face a seeming mixture of astonishment and confusion.

  Corr escorted Whitacre outside as Wilson found a seat in the foyer. Herndon and Shepard took chairs on either side. Herndon leaned in just a few feet from Wilson’s face, his elbows resting on his knees.