Archer-Daniels Played Key Role in Futures Investigation

CHICAGO — A lengthy FBI investigation into practices at the world’s two largest commodities futures exchanges received a critical boost from Archer-Daniels-Midland, a major grain processing conglomerate, sources close to the case said Monday.

Information about Archer-Daniels-Midland’s role in the probe came as government agents continued to serve federal grand jury subpoenas Monday on brokers and traders at the Chicago Board of Trade and the Chicago Mercantile Exchange.

Substantial evidence of alleged trader fraud at the two exchanges--where futures contracts on everything from wheat to gold and foreign currencies to corn are traded--already had been collected by FBI agents when, about two years ago, Archer-Daniels-Midland complained to the government about trading practices.

The formal complaint gave the government both the leverage it needed to expand its investigation and the opportunity to place undercover agents, trained and employed by Archer-Daniels-Midland, in the soybean and Treasury bond trading pits at the Chicago Board of Trade and perhaps at the Merc as well, the sources said.

While The Times reported earlier on the Decatur, Ill., company’s role in training and employing the undercover FBI agents, the new information suggests the company’s involvement was more extensive.

“They played a critical role in a complex investigation,” the sources said.

“They gave extraordinary cooperation.”

Archer-Daniels-Midland, the world’s largest processor of soybeans, has declined to comment on its involvement other than to confirm that it trained the agents and provided them with cover as they were collecting evidence.

Larry Green reported from Chicago and Ronald J. Ostrow reported from Washington.