Federal prosecutors have expanded a criminal investigation into Archer Daniels Midland (ADM) to assess whether the company intentionally misled investors by inflating financial results, particularly within its Nutrition division. This inquiry builds on a previous investigation reported in February and raises significant concerns for the 122-year-old agricultural commodities giant, which has annual sales of approximately $100 billion. Internal transactions at ADM have sparked this extensive probe, with implications that could pose substantial risks to the company's reputation and financial standing. The investigation is reportedly focused on accounting practices that may have been manipulated to enhance the perceived performance of the Nutrition division, a sector that has received considerable attention following the CEO's push into plant-based proteins, influenced in part by personal motivations. Legal experts have noted that such accounting maneuvers could transition from acceptable practices to fraud if they are found to be misleading.
We rarely call it the F word…but there is a lot more fraud at companies than people realize. Particularly private companies. Folks know what investors care about so they manipulate the accounting to make things look better. https://t.co/kjtYMlwCGa
$ADM (+0.2% pre) Internal transactions at food giant ADM spark a sprawling criminal probe - Reuters https://t.co/qIAM9ULLvJ
The CEO of food giant ADM made a bet on plant-based proteins, which employees said was partly inspired by his daughter’s vegetarianism. Now, the company’s ‘Nutrition’ division is the subject of a sprawling criminal probe https://t.co/RJ8VGvx3mK