"After an investigation of lasting almost three years, ADM has reached a $40 million civil penalty settlement with the SEC, without admitting or denying wrongdoing, over civil allegations that it misled investors about the performance of the nutrition segment, which produces ingredients for both human and animal food, the agency announced on Tuesday. Regulators alleged ADM used improper accounting to make the segment's profits look stronger than they really were, primarily by shifting profits from other divisions through non‑market "intersegment" sales and other adjustments."
"Former ADM executives Vince Macciocchi, former SVP and president of nutrition, and chief sales and marketing officer; Ray Young, who served as CFO from 2010 until 2022 and later as vice chairman; and Vikram Luthar, CFO from 2022 to 2024, were also charged in connection with the accounting and disclosure issues. Macciocchi agreed to pay disgorgement and prejudgment interest of about $404,343 dollars plus a $125,000 dollar civil penalty, and Young agreed to pay disgorgement and prejudgment interest totaling about $575,610 dollars"
An almost three-year SEC investigation concluded with ADM agreeing to a $40 million civil penalty settlement without admitting or denying wrongdoing for allegedly misleading investors about the nutrition segment's performance. Regulators alleged ADM used improper accounting, primarily shifting profits from other divisions through non‑market "intersegment" sales and other adjustments, to overstate nutrition profits. Former executives Vince Macciocchi and Ray Young were charged and agreed to pay disgorgement, prejudgment interest and civil penalties totaling about $404,343 plus $125,000 and about $575,610 respectively. Vikram Luthar faces separate accounting and disclosure fraud charges alleging he directed adjustments to inflate nutrition results for fiscal 2021 and 2022.
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