05:15 PM EDT, 03/13/2024 (MT Newswires) -- Archer-Daniels-Midland's ( ADM ) ethanol trading unit is being probed by the US Department of Justice as part of a larger investigation into the company's accounting practices, Reuters reported Wednesday, quoting unnamed sources with knowledge of the matter.

The U.S. Attorney's Office for the Southern District of New York is investigating whether the company inaccurately accounted for trading hedges, the report said.

Reuters said that ADM this week had confirmed reports that the Justice Department is investigating accounting practices related to its Nutrition unit.

ADM said in a statement Tuesday that it has developed a remediation plan for a material weakness in its internal control over financial reporting related to accounting practices for intersegment sales.

The remediation plan followed an internal probe related to accounting practices in the Nutrition division, ADM said Tuesday, adding that the investigation was first announced in January.

"We do not have a comment beyond what we disclosed yesterday," an ADM spokesperson said Wednesday in reply to MT Newswires' request for comment about the ethanol probe.

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