"ADM announced on Tuesday that it has entered into a settlement agreement with the U.S. Securities and Exchange Commission (SEC) to resolve its investigation into ADM's prior reporting of inter-segment sales, without admitting or denying any wrongdoing. As part of the settlement, ADM agreed to pay a $40 million penalty. According to the SEC, ADM engaged in years of profit-shifting that made its star nutrition segment appear to meet ambitious growth targets, even as demand softened and margins declined."
"Three former top executives, including two past CFOs, have been charged. Two have settled, while the most recent finance chief, Vikram Luthar, CFO from 2022 to 2024, is preparing for a courtroom fight. "ADM has implemented significant changes to its financial leadership team and financial controls," the company said in a press release on Tuesday. Monish Patolawala has served as ADM's EVP and CFO since Aug. 1, 2024. He previously held the CFO role at 3M."
ADM entered a settlement with the U.S. Securities and Exchange Commission and agreed to pay a $40 million penalty without admitting or denying wrongdoing. The SEC concluded that ADM engaged in years of profit-shifting that made the nutrition segment appear to meet growth targets despite softened demand and declining margins. Three former top executives, including two past CFOs, have been charged; two settled and the most recent finance chief, Vikram Luthar, is preparing for a courtroom fight. ADM reported significant changes to financial leadership and controls and named Monish Patolawala as EVP and CFO. Fraud persists despite regulations, and firms are increasingly using advanced analytics and artificial intelligence to detect and prevent fraud. Maintaining detailed audit trails of AI decision-making enhances transparency and traceability, and AI should not be treated as a standalone solution.
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