ADM faces federal probe after troubling financial discoveries

In a market-shaking move this fall‚ agri-giant ADM cut its 2024 profit outlook and pushed back its quarterly report; their stock lost $1‚6B in value next day (which shows how fast things can change in business)

Federal investigators have stepped-up their work since early-2024‚ looking into possible wrong-doing at the Chicago-based company. The probe focuses on how ADM handled money-moves between its departments: prosecutors want to know if the firm broke any rules when pricing goods between units

The main focus is on ADMs newer business part - the Nutrition unit‚ which Juan Luciano (CEO) started about 6 years ago. He had big dreams for it‚ even putting special rubber stress-balls in workers hands with “1B X 2020“ written on them; but those billion-dollar hopes never came true

Internal emails show some odd things going on: managers were told to “donate to Nutrition“ through price-cuts‚ and workers felt pushed to hit unrealistic targets. The unit got special treatment because boss-bonuses were tied to its success; top leaders got $69M in stock-rewards last spring

The investigation has grown quite big:

• More than 35 current and past workers called to NY for questioning
• FBI agents knocking on doors near ADMs Illinois base
• Prosecutors looking at emails between ADM and its auditors
• Focus on specific products like lysine and “white flake“

Now ADMs stock trades at half its 2022 peak value; though Luciano still says he believes in Nutritions future‚ he admits “some things we did to ourselves“

Its exhausting; youre working feverishly just to basically spin things to hit the number