Informant

by Kurt Eichenwald

  Details of the original Wall Street Journal report from Thomas M. Burton and Scott Kilman, “Seeds of Doubt: An Executive Becomes Informant for the FBI, Stunning Giant ADM,’’ Wall Street Journal, July 10, 1995, p. 1.

  Information regarding the WAND broadcast on the morning of July 11 from a summary transcript of that newscast.

  Ron Ferrari’s professional football career background from Tim Rosaforte, “Ferrari Prepared for the Long Haul,’’ Orlando News Sentinel, January 19, 1985, and the 1986 Media Guide, p. 39, published by the National Football League.

  Details of Ferrari’s conversation with Whitacre from Ferrari’s sworn testimony of January 27, 1998, in the case of ADM v. Mark E. Whitacre et al.

  Mark Whitacre also reported receiving threatening calls to the FBI a series of times.

  Headline of Wall Street Journal article of July 13 from the original news story.

  Whitacre’s conversation with Herndon on July 13, 1995, was recorded in a 302 of that same date.

  Details of the anonymous letters that arrived at ADM on July 18, 1995, from copies of the original letters and their envelopes.

  Background of Franklin, Tennessee, from Don O’Briant, “Walking in a Victorian Wonderland,’’ Atlanta Journal and Constitution, November 17, 1999, p. 6G. Also, from Donna Dorian, “Franklin: The Best Small Town in Tennessee,’’ Colonial Homes, February 1995, p. 62.

  Some details of Gert Borasky’s conversation with Ginger Whitacre from the 302 of her interview with D’Angelo in 1995.

  Details of the first Lamet Vov memo from the letter itself. The timing of the letter’s arrival, and the other details about where it was sent, from itemized AT&T phone records for David Hoech.

  The makeup of the ADM special committee of directors was detailed in Burton and Kilman, “Archer-Daniels Names 9-Member Panel on U.S. Criminal Probe and Civil Suits,’’ Wall Street Journal, July 20, 1995, p. 4.

  Details of the Chicago Tribune article from Michael Arndt and George Gunset, “Mulroney Heads ADM Probe ‘Response’: Discrepancies Emerge in Reported Mole Whitacre’s Academic Record,’’ Chicago Tribune, July 20, 1995, Business section, p. 1.

  Some details of the original negotiation between Whitacre and Myer for the house from a copy of their contract of sale, dated on the first page as July 20, 1995, but signed by both parties on July 21.

  Myer described his run-in with Whitacre on July 21 in several documents. His most detailed description was provided in his July 17, 1996, deposition in the case Paul J. Myer and Carole A. Myer v. Mark Whitacre et al., case number 23547, filed in the Chancery Court for Williamson County at Franklin. Other information from the 302 of his 1995 interview with D’Angelo at his home in Reston, Virginia.

  Details of the anonymous note from San Francisco to Aubrey Daniel from a copy of the original.

  Details of Aubrey Daniel’s letters to Attorney General Janet Reno from the original documents.

  Some details of Whitacre’s interview with Henkoff, as well as the topics of discussion, from Mark Whitacre and Ronald Henkoff, “My Life as a Corporate Mole for the FBI,’’ Fortune magazine, September 4, 1995, pp. 52–63.

  Borasky’s conversations with Whitacre and Caiazzo are described in her 302 from the summer of 1995. Details of Caiazzo’s letter of July 26, 1995, to Borasky from a copy of the original.

  Rochelli’s conversation with Mark Whitacre was described in his June 20, 1996, testimony before a federal grand jury and the 302 of his January 24, 1996, interview with the FBI.

  Whitacre’s complaints to Shepard are described in a 302 of the conversation, dated July 27, 1995.

  Details of the Lamet Vov letters during the summer of 1995, including the July 30 letter, from copies of the originals.

  Details of the state-of-severance negotiations between ADM and Whitacre as of August 2, 1995, from a memo describing a meeting the following day at the Justice Department, where Williams & Connolly presented a copy of the tentative severance agreement. The memo, dated August 16, 1995, was written by Scott Hammond, an attorney in the Antitrust Division.

  Some details of Whitacre’s first confession and the related conversation from a 302 prepared by Shepard and Herndon and dated August 2, 1995.

  No substantive evidence ever emerged indicating that Frankel received money as part of an ADM bonus plan. Again, Frankel has denied all wrongdoing and was never charged.

  CHAPTER FOURTEEN

  Details of the meeting between Williams & Connolly and the antitrust attorneys from the detailed August 16, 1995, memorandum written by Hammond.

  Details of the handwriting expert’s findings from the original document report of July 24, 1995, by Lyndal L. Shanefelt.

  In the presentation to the Justice Department, Williams & Connolly incorrectly described these letters as saying that the Whitacre embezzlement amounted to $2.5 million—essentially rounding it to the nearest half million dollars. The actual amount of $2.35 million comes from a copy of the original letter.

  Details of Whitacre’s phone call to Shepard on August 3, 1995, from one of two 302s of their conversations on that day.

  The Chicago city corruption case with the informant who committed crimes while working for the FBI was Operation Silver Shovel. Details of that investigation and the informant’s troubles from Matt O’Connor, “Silver Shovel Dirt Piles Up,” Chicago Tribune, January 11, 1996, News section, p. 1.

  Details of the meeting between Williams & Connolly and Seth Waxman on August 4, 1995, come from a memo to the file written by Waxman immediately after the lawyers left his office.

  Some details of the August 4 meeting between the Whitacres, Shepard, and Kate Killham from the 302 prepared of those discussions.

  Some details of Page’s meeting with Whitacre from the 302 of his FBI interview, dated November 25, 1996.

  Details of the I.O.L.A. account set up by Caiazzo from two documents in Whitacre’s Swiss bank records, including a statement of account for account number PO-50,933.0 at the Swiss Bank Corporation in Zurich, as well as a copy of the original wire-transfer order, dated August 4, 1995.

  The confrontation between Mark and Ginger Whitacre was described separately by the couple in their subsequent interviews with Dr. Derek Miller, and were described in Dr. Miller’s notes of the interview dated August 11, 1995.

  The news of Whitacre’s thefts from the Associated Press, “ADM Fires Mole, Says He Stole at Least $2.5 Million,’’ August 7, 1995.

  Epstein described the last-minute change in Whitacre’s story to his client’s psychiatrist, Dr. Derek Miller of Chicago. Some details from this scene from the doctor’s notes of that discussion, dated August 9, 1995.

  Some details of Whitacre’s August 7 interview with the FBI and the Fraud Section from a 302 prepared by Supervisory Special Agent Edward Herbst.

  Details of Bassett’s role as Michael McLoughlin from Christopher Drew and William B. Crawford Jr., “Indictments Name 46 Traders,’’ Chicago Tribune, August 3, 1989, p.1.

  Rusty Williams described the events on the morning of August 9, 1995, in an interview with Special Agent Shepard on June 24, 1996. Some details from the 302 of that interview.

  CHAPTER FIFTEEN

  Some details of Dr. Derek Miller’s contacts with Epstein and the Whitacres from his admission note for Patrick O’Brien, the alias he used for Mark Whitacre, dated August 9–10, 1995.

  In subsequent recollections of these events to government officials, the precise timing of the Borasky call to Ginger Whitacre was in dispute, with some people claiming it had occurred on August 10, 1995, rather than August 9. However, everyone agreed that subsequent to that call, Borasky received the fax from Joseph Caiazzo. I have established the timing through a copy of that original fax, which carries an electronic “telltale’’ that clearly establishes the transmission time of the document as being on August 9, 1995, at 11:28 in the morning. Some details of this scene are from that letter, as well as from the 302 of Borasky’s interview with D’Angelo, and an August 16, 1995, m
emo by the Department of Justice of an interview with Paul Myer by Brenda Carlton. Other details are from Myer’s 302 with D’Angelo, from August 25, 1995.

  Details of Dr. Derek Miller’s first meeting with Whitacre from his admission note of August 9–10, 1995.

  Some details of Walsh’s hunt for the truth about Whitacre’s adoption history from “Whistle-blower Leaves Trail of Contradictions: Former ADM Executive Mark Whitacre’s Life Includes Puzzles, Inconsistencies,’’ Washington Post, August 11, 1995, p. D1.

  Some details of Daniel’s conversation with D’Angelo and Bassett from a memorandum recording an attorney contact, written by D’Angelo on August 11, 1995.

  Details of the Swiss investigation as of August 1995—including the conversations with Rolf Brüggermann, from a series of faxes sent by Triet to Swiss bankers in Zurich during that month, including a letter of August 10, 1995, to Brüggermann.

  Details of Miller’s conversations up through August 10 from his admission note of August 9–10, 1995.

  Details of Miller’s conversations with Whitacre of August 11 from his progress note of that day for Patrick O’Brien, the alias he used for Mark Whitacre. Other information from Miller’s notes of an interview with Ginger Whitacre on that same day.

  Details of the work by private investigators in Thailand from an August 14, 1995, memorandum prepared by Steve Vickers, Deepak Bhawnani, and Eric Hui regarding the “Williams & Connolly case.’’

  Details of the letter sent to the Wall Street Journal from Kilman and Burton, “Ever More Serious: ADM Informant Faces Widening Allegations; He Attempts Suicide,’’ Wall Street Journal, August 14, 1995, p. A1.

  Fortune press release from the original document sent out over PR Newswire on August 12, 1995.

  Whitacre’s quotes in Fortune from “My Life as a Corporate Mole for the FBI,’’ Fortune, September 4, 1995, p. 52.

  Details of the fax sent to Briel from a copy of the original document. While the document is dated August 8, there is no doubt it was sent the following week. Not only is that confirmed by the fax telltale, but also by the dates of when the three checks were written on Whitacre’s Swiss bank account.

  Some details regarding Herndon’s notification of the pending Whitacre indictment from the August 15, 1995, teletype.

  Details of Whitacre’s note to Beat Schweizer from a copy of the original document.

  Some details of Gilbert’s receipt of the package from Switzerland from his sworn testimony, given December 20, 1997, in ADM v. Mark E. Whitacre.

  Some details of the resolution of Whitacre’s pending indictment from an August 22, 1995, memo from Peter Clark to George Martin, an Assistant United States Attorney in Mobile, and Special Agent Craig Dahle.

  Some details of the scene where the FBI serves Williams & Connolly with a subpoena come from a 302 written by Herbst and Stuber on August 16, 1995.

  Bob Dole’s comments at the Illinois State Fair from Anthony Man, “Senator Predicts Probe Won’t Hurt Company’s Clout in Washington,’’ Decatur Herald & Review, August 17, 1995, p. 1A.

  Details of Brenda Carlton’s interview with Myer from a memo she wrote to Gary Spratling, dated August 16, 1995.

  The conversation between Bassett, D’Angelo, and Zaideman was recorded in an internal FBI memo written by the agents on August 21, 1995. Other details from an August 17, 1995, memo written by Zaideman to Jim Epstein. Details of the August 18, 1995, conversation between Bassett and Miller from a 302 written September 8, 1995.

  The quote from Herndon’s August 21, 1995, teletype from a copy of the original document.

  Details of the Journal article from Kilman and Burton, “ADM Asserts Ex-official Diverted Over $9 Million,’’ Wall Street Journal, August 21, 1995, p. A2.

  The items obtained from Williams & Connolly on August 21, 1995, were described in a 302 written by Herbst on that date.

  Details of D’Angelo’s interview with Myer from a 302 of August 25, 1995, for case file number 196D-CG-99593.

  Some details of Liz Taylor’s meeting with ADM lawyers and the subsequent outcome from the 302 of her interview with Bassett and D’Angelo, dated January 18, 1996.

  Details of Whitacre’s interview of September 7, 1995, from a 302 written by D’Angelo and Bassett for case file number 196D-CG-99593.

  Again, while Frankel was investigated for financial wrongdoing, no evidence ever emerged that the company had paid him an under-the-table bonus. No charges were ever brought against him.

  Joseph Caiazzo has said that he had no idea the money for the house mortgage was coming from Whitacre himself. His statement appeared in “Records Show Flows from Archer Executive’s Account,” New York Times, October 24, 1995. To the best of my knowledge, that article was the first time it was publicly disclosed that Whitacre had used the house mortgage as a method of bringing money from a foreign account back into the country, tax-free. Asked about the transaction, Caiazzo expressed surprise. “I’m as shocked as anybody,” he said in the article. “I had reason to believe that it was absolutely not his money.” Caiazzo was never charged with any wrongdoing.

  CHAPTER SIXTEEN

  The timing of Richter’s message to Hulse and Allison, as well as the words he used, from a transcript of the voice mail.

  Hulse’s decision to save Richter’s message from a 302 of his interview of September 12, 1995, as well as a September 15 memorandum of a subsequent discussion between Sean Berkowitz and D’Angelo.

  Some details of Hulse’s interview with the FBI on September 12 from a 302 written by D’Angelo and Grant for case file number 196D-CG-99593.

  Descriptions of the Nigerian swindle from copies of fraud letters, as well as a 1998 briefing paper by the International Organization of Black Security Executives and information posted on the Web site for the Securities and Exchange Commission. Additional information from transcripts of a December 11, 1994, broadcast of 60 Minutes and an August 17, 1994, broadcast on Morning Edition with National Public Radio.

  Jerome Schneider’s background from Kate Berry, “Is It Still Smart to Keep Your Money Offshore?,’’ Investor’s Business Daily, July 9, 1996, p. A1. Also, from a transcript of an April 11, 1997, broadcast on 20/20, the television program.

  The deal offered to Richter by ADM on September 13 was described in a letter two days later from Steve Urbanczyk of Williams & Connolly to Scott Roberts of ADM’s legal department.

  The termination of Sid Hulse was described by Sean Berkowitz in his conversation with D’Angelo that night, which was recorded in the memorandum of September 15.

  A partial transcript of Johnson’s speech at Emory was printed in “ADM and the FBI ‘Scumbags,’ “ Fortune, October 30, 1995, p. 116.

  Whitacre’s new job at Future Health Technologies was described by Bloomberg Business News, “ADM Whistleblower Whitacre Has New Job,’’ Springfield State Journal-Register, October 10, 1995, p. 23.

  Richter described his conversations with Whitacre in his sworn testimony of May 18, 1998, in ADM v. Mark E. Whitacre et al.

  Details of Epstein’s September 21 call to Bassett from a memorandum written by Bassett dated September 26, 1995.

  Details of Page’s interview with Williams & Connolly from the 302 of his November 25, 1996, interview with D’Angelo and Grant for case file number 196D-CG-99593.

  Details of Ron Ferrari’s first FBI interview from a 302 dated October 10, 1995, and written by D’Angelo and Bassett for case file number 196D-CG-99593.

  Richter’s comments appeared in several reports, including Henkoff, “Checks, Lies and Videotapes,’’ Fortune magazine, October 30, 1995, p. 109, and Bloomberg Business News, “Fired ADM Exec: Firm OK’d Secret Payments,’’ Decatur Herald & Review, October 12, 1995, p. 1A.

  Grant described his October 13 phone call with Mackay and Nixon in an electronic communication to Bureau headquarters, written on October 21, 1995.

  Details of the Tribune article from Nancy Millman, “ADM Mole Discloses a Cache of $6 Million: Off-the-Books Scheme End
orsed by Bosses, Former Executive Says,’’ Chicago Tribune, October 17, 1995, p. 1.

  Details of Whitacre’s meeting with Miller on October 17 from the psychiatrist’s notes of that day’s session.

  There are several documentary sources for the story of Ferrari’s encounter with Whitacre, two of which are contemporaneous. A memorandum by Bassett written on October 20, 1995, described a phone call of the previous evening with Jeff Steinback, Ferrari’s lawyer, in which the encounter is described. In addition, immediately after the event, Ferrari prepared a memo for Steinback, describing the events as they unfolded. Finally, Ferrari described the event in his sworn testimony of January 27, 1998, in the case of ADM v. Mark E. Whitacre et al.

  The Justice Department statement appeared in several publications. Relevant articles are from Nancy Millman, “ADM ‘Not Target’ of Criminal Probe,’’ Chicago Tribune, October 18, 1995, Business section, p. 1, and “Archer-Daniels Is Not Subject of One Investigation by U.S.,’’ New York Times, October 18, 1995, p. D10.

  Richard Reising’s statement at the ADM shareholders meeting from Henkoff, “ADM Takes the Justice Department for a Spin,’’ Fortune magazine, November 27, 1995, p. 35. Other details, including the contretemps between Andreas and the union official, are from my own observations and notes.

  Details of Richter’s November 8 interview with D’Angelo and Bassett from the 302 of that encounter written by the agents for case file number 196D-CG-99593. Additional details from his sworn testimony in ADM v. Mark E. Whitacre, as well as from Whitacre’s 2004 examination on December 3, 1997, in the bankruptcy case In re: Mark Edward Whitacre and Ginger Lynn Whitacre, case number 97-14541 (Chapter 7), filed in the United States Bankruptcy Court for the Middle District of North Carolina, Durham Division.

  Adolpho Acebras was never charged with wrongdoing in the case. Richter discussed the role of Acebras in greater detail during his testimony in ADM v. Mark E. Whitacre et al. Supporting material comes from the original documentation in the transaction, including: an undated letter from Komven to Richter, bearing the signature of Acebras; an internal ADM “accounts payable check/distribution request,” which shows that the check was made out to the same address and individual listed in the undated letter; and a copy of a December 1, 1991, check from ADM in the amount of $87,466, payable to Acebras.