The U.S. Securities and Exchange Commission has ordered Archer-Daniels-Midland Company (ADM) to pay a $40 million civil penalty after finding the company and three former executives engaged in accounting and disclosure fraud. Former executives Vince Macciocchi and Ray Young also agreed to pay disgorgement and penalties totaling nearly $1.2 million, while Macciocchi accepted a three-year officer and director bar.
According to the SEC, ADM's Nutrition segment performance was materially inflated through improper "adjustments" between 2019 and 2022, including retroactive rebates and price changes not offered to third-party customers. These adjustments were designed to make Nutrition appear to meet profit growth targets of 15-20% annually, misleading investors and overstating operating profits in multiple fiscal years.
The SEC credited ADM for its cooperation and significant remediation, including conducting an internal investigation, voluntarily reporting findings, and strengthening internal accounting controls. A Fair Fund will be established to distribute monetary relief to harmed investors.
The Commission also filed a litigated action against former executive Vikram Luthar, alleging he directed the improper adjustments and violated antifraud provisions. The complaint seeks injunctions, civil penalties, and reimbursement of executive compensation under the Sarbanes-Oxley Act.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.