What accounting issues did ADM face with the SEC?

ADM faced allegations from the SEC of using improper accounting to mislead investors about the performance of its nutrition segment, allegedly by making profits appear stronger than they were.

How much did ADM pay to settle with the SEC?

Archer Daniels Midland agreed to a $40 million civil penalty settlement with the SEC without admitting or denying wrongdoing.

Are former ADM executives facing charges related to the accounting issues?

Yes, former executives including Vince Macciocchi and Ray Young were charged, with some agreeing to penalties, while former CFO Vikram Luthar still faces fraud charges.

Home / Business and Economy / ADM Pays $40M SEC Fine for Misleading Investors

ADM Pays $40M SEC Fine for Misleading Investors

29 Jan

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Summary

ADM settled SEC allegations of improper accounting for $40 million.
Former executives face charges for alleged role in inflating profits.
The nutrition unit's performance was allegedly manipulated for investor reporting.

ADM Pays $40M SEC Fine for Misleading Investors

Archer Daniels Midland (ADM) has agreed to a $40 million civil penalty settlement with the Securities and Exchange Commission (SEC) concerning allegations of misleading investors about its nutrition segment's financial performance. This resolution, reached without ADM admitting or denying wrongdoing, stems from a three-year investigation into improper accounting practices.

Regulators alleged that ADM manipulated accounting to artificially enhance the nutrition unit's profits, primarily by reallocating earnings from other divisions through non-market "intersegment" sales and other adjustments. This occurred primarily during fiscal years 2021 and 2022.

In connection with these issues, former ADM executives Vince Macciocchi and Ray Young, along with current CFO Vikram Luthar, were charged. Macciocchi and Young have agreed to settlements involving disgorgement and civil penalties.