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Diamonds Foods: Accounting Fraud

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Submitted By marisol310
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Diamonds Foods: Accounting Fraud

Diamond foods CEO Michael Mendes and former CFO were both accused of accounting fraud, they misled investors by lying about walnut costs to boost earnings. In addition to the settlement with the company, Diamond's former Chief Executive Officer Michael Mendes also agreed to pay a $125,000 penalty and settle without admitting or denying the charges, the Securities and Exchange Commission said. The finding of a two-year investigation into payment schemes involving walnut suppliers designed to "falsify costs ... boost earnings and meet estimates by stock analysts." It's just the latest shoe to drop for a company that was once close to becoming one of the biggest snack food retailers in the world. Interesting how these companies commit accounting fraud and only have to pay back the money but I see no mention of any jail time. I see why the big company CEO and CFO all continue doing it. It’s like a high roller taking risks they love the thrill of the excitement, the taking chases, the how far can I go before getting caught, because you know they are going to get caught. They will have to pay back a couples of millions dollars back and lose their jobs. Think about it, is it or was it all worth it, at the end. Because in this case, I think that we the consumers are paying the consequences paying the high price of the walnuts. They steal the money and we the consumers pay the price before anyone realizes that the money was taken....

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