Re: Mike Andreas goes to jail?
Michael, thanks for mentioning this book, which I didn't know about but which I'll find soon. I've got a clipping file on ADM with a fantasy of a film script someday. Sounds as if Hoesch is already on that job. ADM got prosecuted not because the justice Dept was on the job but because the head of one of the ADM divisions went to the authorities and assisted in videotaping the conspirators, including Michael Andreas, in action. In one bit of tape, in a Honolulu hotel room as I recall, the hidden cameras were rolling when someone in the room unknowingly put a drink down in front of the lens. Soon an FBI agent, disguised as a waiter, entered the room to straighten up, and to give the camera a clear path. When the case went public, either through convening a grand jury or some other way, the first thing the Justice Department did was inform ADM of who, within its executives, was the informant. Somebody should spend a long time in prison for that, but is probably now promoted to some higher level. Later, a Federal judge in Chicago, re a civil part of recovering damages, put the opportunity to represent the class action participants out to bid. What better than the market to find the right law firm? He chose the low bidder and the low bidder chose to settle the case almost immediately, without any depositions or other investigation. An amazing story -- and again, someone (maybe both the judge and the winning bidder) should have been censured, but wasn't. The informant, meanwhile, was double-crossed in other ways by the FBI and Justice and ended up attempting suicide and then going into a mental care institution. He got prosecuted for stealing money from ADM in what looks to me like, rather than him stealing from the employer, rather a corporate money-laundering scheme to get cash for bribes or whatever. (ADM, you probably recall, in the person of Michael Andreas' father, delivered a briefcase full of cash to Nixon -- ADM seems to have kept untraceable cash handy.) The informant got a long prison sentence, much longer than Andreas or the other executive convicted with him, but he remarked to the judge at the sentencing hearing that he was much happier in prison than he had been at ADM. I look forward to reading the book you mentioned. Gene Michael Perelman wrote: A few days ago, Justin suggested that the ADM conviction was evidence of a certain degree of equity in the criminal justice system. A couple months before, I got a call from David Hoech, who was the ADM Shareholder Watch. I had posted something on pen-l concerning ADM. We had a nice chat any sent me a pile of papers. I know reading a fascinating book, Rats in the Grain by James Lieber, concerning the ADM case. It is clear, even though that I am on page 30, that David Hoech was the person solely responsible for keeping the case on track. So far, ADM has managed to get the price-fixing case moved to Washington where ADM's lobbyists are more powerful. It got the FBI to appoint as chief investigator someone who worked with Duane Andreas before. In short, to fix was in. If the next 300 pages are as interesting is the first 30, I will have an interesting day -- hopefully not in the Chinese sense. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
Re: Re: Mike Andreas goes to jail?
Gene, if you are really interested in the film, I might be able to find Hoech's number among my papers. Eugene Coyle wrote: ADM got prosecuted not because the justice Dept was on the job but because the head of one of the ADM divisions went to the authorities and assisted in videotaping the conspirators, including Michael Andreas, in action. Not quite. Andreas believed that a sabateur was responsible for poisonous materials that ADM sold. He called on the FBI. The mole eventually, told them about the price fixing. I never understood why. In one bit of tape, in a Honolulu hotel room as I recall, the hidden cameras were rolling when someone in the room unknowingly put a drink down in front of the lens. Soon an FBI agent, disguised as a waiter, entered the room to straighten up, and to give the camera a clear path. I don't think that any of the tapes were ever released. The mole, Whitacre, was a wierdo. When the case went public, either through convening a grand jury or some other way, the first thing the Justice Department did was inform ADM of who, within its executives, was the informant. Not quite. Williams and Connely lawers offered to represent the employees. The mole thought that his talk with his lawyer was confidential. It was not. Later, a Federal judge in Chicago, re a civil part of recovering damages, put the opportunity to represent the class action participants out to bid. That was truly wierd. What better than the market to find the right law firm? He chose the low bidder and the low bidder chose to settle the case almost immediately, without any depositions or other investigation. An amazing story -- and again, someone (maybe both the judge and the winning bidder) should have been censured, but wasn't. The informant, meanwhile, was double-crossed in other ways by the FBI and Justice and ended up attempting suicide and then going into a mental care institution. The 2 suicides were questionable. He was unstable, at least after he came under pressure. He got prosecuted for stealing money from ADM in what looks to me like, rather than him stealing from the employer, rather a corporate money-laundering scheme to get cash for bribes or whatever. (ADM, you probably recall, in the person of Michael Andreas' father, delivered a briefcase full of cash to Nixon -- ADM seems to have kept untraceable cash handy.) However, the book gives evidence that Whitacre did not steal the money -- that sending money to Switzerland seems to have been standard practice in the company -- to give non-taxable bonuses. A friend of a friend was instrumental in sending the money abroad. The informant got a long prison sentence, much longer than Andreas or the other executive convicted with him, but he remarked to the judge at the sentencing hearing that he was much happier in prison than he had been at ADM. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
Re: Re: Re: Mike Andreas goes to jail?
Michael, the description of the incident in the Honolulu hotel room was reported in a daily newspaper. I probably read it in the Wall St. Journal but not sure that was the source. I've read, as you report below, that the money was secretly transferred to employees to be non=taxable bonuses. The dollar amounts were pretty large and the suspicion remains that it remained corporate money to be used for whatever. As I recall, the trial judge in the prosecution of Andreas did admit the tapes -- but I'm not sure they were ever played publically, or even at the trial. Gene Michael Perelman wrote: Gene, if you are really interested in the film, I might be able to find Hoech's number among my papers. Eugene Coyle wrote: ADM got prosecuted not because the justice Dept was on the job but because the head of one of the ADM divisions went to the authorities and assisted in videotaping the conspirators, including Michael Andreas, in action. Not quite. Andreas believed that a sabateur was responsible for poisonous materials that ADM sold. He called on the FBI. The mole eventually, told them about the price fixing. I never understood why. In one bit of tape, in a Honolulu hotel room as I recall, the hidden cameras were rolling when someone in the room unknowingly put a drink down in front of the lens. Soon an FBI agent, disguised as a waiter, entered the room to straighten up, and to give the camera a clear path. I don't think that any of the tapes were ever released. The mole, Whitacre, was a wierdo. When the case went public, either through convening a grand jury or some other way, the first thing the Justice Department did was inform ADM of who, within its executives, was the informant. Not quite. Williams and Connely lawers offered to represent the employees. The mole thought that his talk with his lawyer was confidential. It was not. Later, a Federal judge in Chicago, re a civil part of recovering damages, put the opportunity to represent the class action participants out to bid. That was truly wierd. What better than the market to find the right law firm? He chose the low bidder and the low bidder chose to settle the case almost immediately, without any depositions or other investigation. An amazing story -- and again, someone (maybe both the judge and the winning bidder) should have been censured, but wasn't. The informant, meanwhile, was double-crossed in other ways by the FBI and Justice and ended up attempting suicide and then going into a mental care institution. The 2 suicides were questionable. He was unstable, at least after he came under pressure. He got prosecuted for stealing money from ADM in what looks to me like, rather than him stealing from the employer, rather a corporate money-laundering scheme to get cash for bribes or whatever. (ADM, you probably recall, in the person of Michael Andreas' father, delivered a briefcase full of cash to Nixon -- ADM seems to have kept untraceable cash handy.) However, the book gives evidence that Whitacre did not steal the money -- that sending money to Switzerland seems to have been standard practice in the company -- to give non-taxable bonuses. A friend of a friend was instrumental in sending the money abroad. The informant got a long prison sentence, much longer than Andreas or the other executive convicted with him, but he remarked to the judge at the sentencing hearing that he was much happier in prison than he had been at ADM. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
Mike Andreas goes to jail?
A few days ago, Justin suggested that the ADM conviction was evidence of a certain degree of equity in the criminal justice system. A couple months before, I got a call from David Hoech, who was the ADM Shareholder Watch. I had posted something on pen-l concerning ADM. We had a nice chat any sent me a pile of papers. I know reading a fascinating book, Rats in the Grain by James Lieber, concerning the ADM case. It is clear, even though that I am on page 30, that David Hoech was the person solely responsible for keeping the case on track. So far, ADM has managed to get the price-fixing case moved to Washington where ADM's lobbyists are more powerful. It got the FBI to appoint as chief investigator someone who worked with Duane Andreas before. In short, to fix was in. If the next 300 pages are as interesting is the first 30, I will have an interesting day -- hopefully not in the Chinese sense. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
