FBI agents serve grand jury subpoenas to current and former Archer-Daniels-Midland (ADM) employees, indicating an intensification of the criminal investigation into the grain trader’s accounting practices. The subpoenas, issued by the U.S. attorney’s Manhattan office, target individuals in the Decatur, Illinois area, where ADM operates major facilities.
Subpoenas Detail Accounting Information
The subpoenas request information and communications related to ADM’s accounting practices, particularly focusing on goods and cash transfers between company segments. Additionally, authorities seek details on below-cost sales from specific units to the nutrition division. Recipients are instructed to provide documents and testify before a grand jury in New York.
Investigation and Market Response
While government investigations do not imply wrongdoing, ADM’s shares experienced a brief decline following Reuters’ report. The investigation adds pressure on ADM, whose shares have already declined by 20% since January amid internal probes into accounting practices related to its Nutrition division.
Correction of Sales and Financial Reporting
ADM announced plans to correct certain sales between its business segments, prompted by an SEC inquiry. The company reassured investors that these corrections are not expected to affect its financial statements significantly. ADM intends to release its financial results on March 12, amid ongoing scrutiny from regulators and investors.
Increased Focus on Accounting Cases
Officials from the U.S. attorney’s office for the Southern District of New York expressed intentions to pursue more accounting-related cases against publicly traded companies. Scott Hartman, co-chief of the office’s securities and commodities fraud unit, emphasized the importance of such cases, indicating a broader regulatory focus on financial reporting integrity.
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