SEC Charges Former ADM CFO with Accounting and Disclosure Fraud

USA: SEC Charges Former ADM CFO with Accounting and Disclosure Fraud

Vikram Luthar, a former chief financial officer of Archer-Daniels-Midland Company (ADM), was charged on January 27, 2026 in the U.S. District Court for the Northern District of Illinois with accounting and disclosure fraud. According to the SEC complaint, Luthar directed adjustments that shifted operating profit to ADM’s Nutrition segment to help the unit meet publicly touted annual profit targets.

Background

Luthar served as CFO of ADM’s Nutrition business before becoming the corporation’s overall CFO. The Nutrition segment was presented to investors as a primary engine for future growth, with projected operating‑profit growth of 15% to 20% per year. When the segment fell short of its targets for fiscal years 2021 and 2022, the complaint alleges that Luthar ordered corrective transactions.

Alleged Accounting Adjustments

The SEC alleges that the adjustments included retroactive rebates and price changes that were not customarily available to ADM’s third‑party customers. These one‑sided transfers of profit were designed to make Nutrition appear to meet its performance projections, thereby rendering the company’s intersegment pricing disclosures false and misleading.

Legal Allegations

The complaint charges Luthar with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, along with Rules 10b‑5 and 13a‑14. He is also accused of aiding and abetting ADM’s violations of reporting, books‑and‑records, and internal‑control provisions, and of failing to reimburse the company for certain executive compensation under Section 304 of the Sarbanes‑Oxley Act of 2002.

Potential Penalties

The SEC seeks permanent injunctions, an officer and director bar, disgorgement of ill‑gotten gains with prejudgment interest, civil penalties, and reimbursement of executive compensation to ADM as required by Section 304.

Enforcement Team

The investigation was conducted by Arefa Patel and Kathleen Sweeney of the Chicago Regional Office, supervised by Steven Klawans, Ann Tushaus, and Paul Montoya, with assistance from Ian Rupell of the Enforcement Office of the Chief Accountant, supervised by Ryan Wolfe. Litigation will be led by Tim Leiman, Ashley Dalmau‑Holmes, and Timothy Stockwell, under the supervision of Ben Hanauer.

Investor Impact

Investors rely on accurate segment reporting to assess company performance. The alleged misstatements, if proven, could have led to material overstatements of Nutrition’s operating profit and growth, potentially influencing investment decisions during the 2021 and 2022 reporting periods.

This report is based on information from U.S. Securities and Exchange Commission, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.