ADM announced on Tuesday that it entered into a settlement agreement with the US Securities and Exchange Commission (SEC) to resolve its investigation into ADM’s earlier 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 has been engaged in years of profit shifting that have made its star nutrition division look set to meet ambitious growth targets, even as demand softens and margins shrink. Three former top executives, including two former CFOs, have been charged. Two settled, while Vikram Luthar, CFO from 2022 to 2024, is preparing for a court battle.

“ADM is implementing significant changes to its financial leadership team and financial controls,” the company said in a press release on Tuesday. Monish Patolawala has served as EVP and CFO of ADM since August 1, 2024. He previously held the role of CFO of 3M. You can read my article about ADM and Luthar here.

ADM (No. 50 of the Fortune 500) is one of the most recent high-profile financial scandals involving large public companies. Despite existing regulations and safeguards, fraud continues to occur. But can AI save?

Technology tools from advanced analytics to artificial intelligence are increasingly being used to detect and prevent fraud—and they have a tool now. A recent paper published in Academy of Accounting and Financial Studies Journal examines the role of AI in reducing risks and improving 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 should be integrated with strong internal controls and human management to provide the best protection against fraud and strengthen financial security, according to research findings.

In the end, it comes back to having someone in the loop, and when it comes to accounting procedures and compliance, the buck stops with the CFO.

cheryl Estrada
[email protected]

LeaderBoard-

Charles Macon appointed CFO of On The Goan operator of airport dining and hospitality experiences at major North American airports. Macon will oversee On The Go’s financial strategy and work 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 appointed CFO of Altaninea specialty pharmaceutical company. Launay brings two decades of experience in accounting, finance, and public company leadership. He served as CFO of a Nasdaq-listed company, leading them to their IPO and later returned to oversee SEC reporting and support additional capital raising.

Great Deal

According to data from S&P Global Market Intelligenceby 2025, technology and media mergers and acquisitions will reach unprecedented levels, driven by major deals in the AI, defense, and media sectors. Total spending amounted to $557 billion in more than 5,400 transactions, marking a 56% increase from 2024.

Major transactions in the AI, defense, fintech, media, and sports sectors are driving dealmaking. By 2026, investment bankers expect M&A to expand to smaller deals and broader sectors.

deepened

The Federal Reserve decided on Wednesday to keep interest constant in the range of 3.50% to 3.75%. As expected by almost 97% of investorsthe decision was largely priced in, with US equities continuing their gains and the S&P 500 trading above the 7,000-point mark for the first time in history, amid continued AI-driven optimism.

Lawmakers emphasized the need to balance the easing of inflationary pressures against strong economic growth and a strengthening of the labor market. The 10-2 vote to keep rates steady included objections from Gov. Stephen Miran and Christopher Waller, who both favored a quarter-point rate cut. Powell’s term ends in May. And Waller is widespread considered the top candidate for him to succeed.

In a press conference, Chair Jerome Powell stressed the Fed’s independence, saying, “We’re not gone. I don’t believe we’re going to be. luck reported.

Heard

“The big CPG companies still have a lot of strength: capital, reach, manufacturing excellence, 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 luck opinion piece titled, “How social media upended CPG giant’s 75-year-old playbook.”