ADM — Price Fixing, Political Cronyism, and a Whistleblower
In 1995, Mark Whitaker, an attorney working for Archer-Daniels-Midland (ADM) , blew the whistle: the company was controlling sales of a food additive that was in high demand in order to keep prices high. The allegations were that ADM and its competitors conspired to fix prices for a number of products (lysine, corn syrup, citric acid, etc.)
Whitaker was dismissed by the firm under allegations of embezzlement that some suspect to have been fabricated, but later confessed to receiving money from his employer "through unusual means," which he felt was done purposefully so that the company would have some dirt on him to blackmail him or undermine his credibility should he blow the whistle on their misdeeds.
A great deal of scrutiny is given to ADMs political connections and the funding of political campaigns on the highest levels of government, both in the United States and abroad, and the support and favoritism the company allegedly received in exchange (subsidies, price supports, tax breaks, etc.)
Analysis
Allegations of unethical business practices against ADM were slow to be prosecuted. The implication is that the company used its political leverage to scuttle and slow down investigations both of the company and of high-ranking executives and board members for an array of misdeeds.
Eventually, the company paid around $200 million (a fairly small sum) in fines and restitutions. However, it is still considered to be a "landmark" case in the prosecution of price-fixing.
Whitakers choice to blow the whistle is also called into question: he had a great deal to gain, personally, from playing along (it's suggested he was on the fast-track to the presidency of the company), but instead chose to tape record conversations and provide paperwork to the government.
Lessons Learned
Price fixing is relatively easy to prosecute. Because of the Sherman Act, the government needs only scant circumstantial evidence to levy fines and penalties on a company that has the appearance of participating in a conspiracy to fix prices.
Political patronage of a firm can be useful in slowing the wheels of justice, but it's important to remember that public figures are beholden to the public, and will ultimately weight the value of campaign contributions over the damage it could do to their own reputation to support their contributors.
The advice to whistleblowers seems to be to make sure your own sheets are clean.
EN: I didn't' get a lot from this chapter - it seems there were a lot of shady things going on, and the author here does a lot more in the way of making innuendo than presenting details.