Good morning. The investigation into agricultural giant Archer Daniels Midland’s (ADM) accounting issues tied to its nutrition segment has made headlines over the past few years.
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 Vikram Luthar, CFO from 2022 to 2024, is preparing for a courtroom fight as he denies the charges.
“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. You can read my article about ADM and Luthar here.
ADM (No. 50 on the Fortune 500) is one of the latest high-profile financial scandals involving large public companies. Despite existing regulations and safeguards, fraud continues to occur. But can AI come to the rescue?
Technology tools ranging from advanced analytics to artificial intelligence are increasingly being used to detect and prevent fraud—and they’re already in use today. A recent paper published in the Academy of Accounting and Financial Studies Journal explores the role of AI in reducing risks and enhancing financial security through fraud detection in accounting. The researchers found that maintaining detailed audit trails of AI decision-making processes ensures transparency and traceability.
However, AI is not a standalone solution; it must be integrated with robust internal controls and human oversight to provide optimal protection against fraud and strengthen financial security, according to the research findings.
Ultimately, it comes back to having a human in the loop, and when it comes to accounting procedures and compliance, the buck stops with the CFO.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Charles Macon was appointed CFO of On The Go, an operator of airport dining and hospitality experiences across major North American airports. Macon will oversee On The Go's financial strategy and partner with the executive team and ownership groups. He brings more than 20 years of financial and operational leadership experience across multi-unit hospitality, consumer services, and private-equity-backed businesses.
Patrice Launay was appointed CFO of Altanine, a specialty pharmaceutical company. Launay brings two decades of experience in accounting, finance, and public company leadership. He served as the CFO of a Nasdaq-listed company, leading them through their IPO and later returning to oversee SEC reporting and support additional capital raises.
Big Deal
According to data from S&P Global Market Intelligence, in 2025, technology and media mergers and acquisitions reached unprecedented levels, driven by large-scale deals in AI, defense, and media sectors. The total spending amounted to $557 billion across over 5,400 transactions, marking a 56% increase from 2024.
Large transactions in AI, defense, parts of fintech, media, and sports drove dealmaking. In 2026, investment bankers anticipate M&A will expand into smaller deals and a wider range of sectors.
Going deeper
The Federal Reserve decided on Wednesday to hold interest rates steady in a range of 3.50% to 3.75%. As expected by roughly 97% of investors, the decision was largely priced in, with U.S. equities continuing their advance and the S&P 500 trading above the 7,000-point mark for the first time in history, amid ongoing AI-driven optimism.
Policymakers emphasized the need to balance easing inflation pressures against still-solid economic growth and a stabilizing labor market. The 10–2 vote to hold rates steady included dissents from Governors Stephen Miran and Christopher Waller, who both favored a quarter-point rate cut. Powell’s term expires in May. And Waller is widely considered a top candidate to succeed him.
In a press conference, Chair Jerome Powell underscored the Fed’s independence, saying, “We haven’t lost it. I don’t believe we will. I certainly hope we won’t,” Fortune reported.
Overheard
"Big CPG companies still have enormous strengths: capital, reach, manufacturing efficiency, and trusted brands. These companies can still win, but only if they stop trying to recreate the past and start building for the present."
—Oisin Hanrahan, the co-founder and CEO of Keychain, an AI-powered manufacturing platform, writes about the future of America’s largest consumer packaged goods (CPG) companies in a Fortune opinion piece titled, "How social media upended the 75-year-old playbook of big CPG."
