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Diamond Foods pays $5 million to settle SEC accounting charge
Diamond Foods pays $5 million to settle SEC accounting charge

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. QUIZ: How well do you understand the Fed stimulus? Michael Mendes, the former CEO, 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 finance chief, orchestrated the scheme. The case...

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