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ADM Pays $40 Million to Settle SEC Case on Nutrition Accounting as DOJ Closes Probe

The agreement ends the broader probe into profit shifting through intersegment deals, with an SEC lawsuit against former CFO Vikram Luthar continuing.

ADM’s $40 million SEC settlement over its nutrition segment highlights why ultimate accountability still rests with CFOs.
Archer Daniels Midland Co (ADM) logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration
The SEC alleges ADM misled investors about profits in its nutrition segment, with former executives facing civil penalties.
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Overview

  • Regulators said ADM boosted reported Nutrition results by routing profit from other units through non‑market intersegment sales, retroactive rebates, and price adjustments.
  • The Justice Department closed its related criminal inquiry without filing charges.
  • Former executives Vince Macciocchi and Ray Young settled civil claims, agreeing to disgorgement and penalties of roughly $404,000 plus $125,000 and about $576,000 plus $75,000, respectively.
  • The SEC separately sued former CFO Vikram Luthar over 2021–2022 adjustments, and he denies the allegations and plans to contest them in court.
  • ADM said it cooperated with investigators, overhauled controls for intersegment transactions, and restated 2023 and early‑2024 filings after earlier corrections and leadership changes including appointing Monish Patolawala as CFO.