By Chris Prentice and Jody Godoy
WASHINGTON (Reuters) – The U.S. Justice Department is probing accounting practices at Archer Daniels Midland Co, according to two people with direct knowledge of the matter, ramping up pressure on the global commodities giant.
New York-listed shares of ADM’s stock dropped 24% on Jan. 22 after the company disclosed the previous day that it had suspended its CFO amid an internal probe into accounting practices related to its Nutrition division. The company’s probe was prompted by a Securities and Exchange Commission (SEC) inquiry, it said.
The two sources said that in recent days the U.S. Attorney’s Office for the Southern District of New York (SDNY) has interviewed former ADM employees about accounting practices at the 122-year old Chicago-based maker of animal feed, sweeteners and other products.
The sources each said a prosecutor asked about the company’s pricing practices related to the sales of goods from ADM’s commodities units to its Nutrition division.
Reuters could not immediately determine the scope of the probe or how advanced it was.
Spokespeople for ADM and SDNY declined to comment. Government investigations are not evidence of wrongdoing and do not necessarily result in charges.
(Reporting by Michelle Price)
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