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Diamond Foods Incorporated

Diamond Foods agrees to pay $5 million to settle SEC case

Diamond Foods agrees to pay $5 million to settle SEC case

Snack-food maker Diamond Foods Inc. agreed to pay $5 million to settle allegations that the company cooked its books. The Securities and Exchange Commission alleged Thursday that Diamond boosted its earnings and stock price in 2010 and 2011 by systematically underreporting payments to walnut growers. The SEC also charged two former Diamond executives. Former Chief Executive Michael Mendes agreed to pay $125,000 to settle a charge that he should have known the accounting was bogus. Mendes neither admitted nor denied guilt. The SEC alleged that Steven Neil, Diamond's former chief financial officer, orchestrated the scheme. The case against Neil is continuing. Soaring walnut...

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