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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchADM agreed to pay a $40 million civil penalty to settle U.S. Securities and Exchange Commission charges over accounting and disclosures for its Nutrition segment. The SEC’s January 27, 2026 administrative order says ADM and two former executives agreed to its findings without admitting or denying them. ADM separately said the Department of Justice closed its investigation with no further action; that account comes from ADM, not a DOJ announcement.
What the SEC said happened
The SEC’s settled administrative order says senior executives pressed employees to find adjustments that would shift operating profit from ADM’s other business segments into Nutrition when the segment risked missing profit forecasts. The order describes retroactive rebates and price changes directed at Nutrition’s targets. According to the SEC, those terms were not available to third-party customers, and the resulting intersegment transactions were not recorded at amounts approximating market.
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The SEC found that Nutrition’s operating profit was overstated for fiscal years 2019, 2021 and 2022, as well as the third quarter of 2019 and every quarter in 2021. These are findings in a civil administrative proceeding—not criminal convictions. ADM and the former executives agreed to cease and desist from relevant violations without admitting or denying the SEC’s findings.
Who agreed to pay, and how much
| Party | Relief under the SEC order |
|---|---|
| ADM | $40 million civil penalty |
| Vince Macciocchi, former executive | $404,343 in disgorgement and prejudgment interest; $125,000 civil penalty; three-year officer and director bar |
| Ray Young, former executive | $575,610 in disgorgement and prejudgment interest; $75,000 civil penalty |
The $40 million ADM agreed to pay is a civil penalty, not disgorgement or a payment designated as compensation to investors. Separately, the SEC order established a Fair Fund to distribute monetary relief to harmed investors. The order does not, by itself, establish who will qualify, how to submit a claim or when distributions will occur.
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Did ADM face criminal charges?
ADM said on January 27, 2026, that the DOJ closed its investigation with no further action. That is the company’s description of the DOJ outcome; the cited materials do not include a DOJ announcement. The SEC settlement was civil, and the available account does not say ADM pleaded guilty or entered a deferred prosecution agreement. Accordingly, “avoids criminal charges” is shorthand for ADM’s report that the DOJ investigation ended without further action, not a criminal finding or a DOJ-issued conclusion described here.
What changed in ADM’s financial reporting?
In a March 2024 update, ADM said it corrected intersegment sales between Nutrition and other reporting segments that had not been recorded at amounts approximating market. ADM said those adjustments did not affect consolidated balance sheets, earnings, comprehensive income or cash flows, and were not material to the consolidated financial statements taken as a whole for any period.
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ADM later said it corrected certain prior-period errors in March 2024 and restated its 2023 Form 10-K and first- and second-quarter 2024 Forms 10-Q in November 2024. It said the transactions addressed in the SEC resolution affected segment-level reporting but did not affect consolidated balance sheet, earnings or cash-flow totals for periods in those restated filings. Segment results matter to investors assessing business-unit performance, but these statements distinguish those reporting effects from changes to consolidated totals.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the case says about ADM’s controls
ADM’s 2024 Form 10-K described a material weakness in controls over measuring intersegment sales and segment disclosures. ADM’s January 2026 release said it had implemented significant changes to financial leadership and controls. The cited disclosures do not establish a definitive date when the weakness was fully remediated.
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Sources
- SEC administrative proceeding, January 27, 2026: findings, settlement terms and Fair Fund.
- ADM release, January 27, 2026: company’s account of the SEC resolution and DOJ closure.
- ADM investigation update, March 12, 2024: intersegment corrections and controls.
- ADM 2024 Form 10-K, filed February 20, 2025: material weakness disclosure.
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