Archer-Daniels-Midland, one of the world's largest agricultural processors with roughly $90 billion in annual revenue, told investors that its Nutrition segment was growing. From fiscal 2019 through 2022, that growth was partly manufactured: the segment's president and the CFO pressured employees to identify adjustments that would move operating profit from other ADM divisions into Nutrition so it would meet internal forecasts.
The adjustments took the form of retroactive rebates and intersegment price changes calibrated to specific dollar amounts — enough to close a gap or hit a target, never amounts that would have been offered to a third party. ADM's public filings stated that intersegment transactions were recorded at amounts 'approximating market,' which the SEC found was false.
In January 2026 the SEC charged ADM, former Nutrition president Vince Macciocchi, and CFO Ray Young with violating antifraud, reporting, and internal-controls provisions. ADM agreed to pay a $40 million civil penalty. Macciocchi accepted a three-year officer-and-director bar; both executives paid disgorgement and penalties.
The scheme cost ADM a $40 million SEC penalty and forced restatement of its Nutrition segment results for fiscal years 2019 through 2022.
Nutrition was ADM's announced growth engine, so missing its forecast would have signalled that the strategy was failing.
Intersegment pricing is opaque to outside investors, making it a low-visibility lever for shifting profit between divisions.
The CFO and segment president participated directly, so internal controls that should have flagged the adjustments were overridden at the top.
When a flagship segment's numbers matter more than its controls, the numbers stop being reliable — audit intersegment pricing as rigorously as external revenue.
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