SEC v. Diamond Foods, Inc.
Case No. 14-cv-00123-WHA (N.D. Cal.)

    In the Matter of Michael Mendes
    Admin. Proc. File No. 3-15674

    SEC v. Steven Neil
    Case No. 14-cv-00122-WHA (N.D. Cal.)

On January 9, 2014, the Commission filed separate actions against Diamond Foods, Inc. ("Diamond"), a snack food company, and its former CEO, Michael Mendes ("Mendes"), and its former CFO, Steven Neil ("Neil"), for their roles in an accounting scheme to falsify walnut costs in order to boost earnings and meet estimates by stock analysts for fiscal quarters in 2010 and 2011. See Diamond's Complaint, Mendes' Order, and Neil's Complaint.

Collectively, Diamond, Mendes, and Neil were ordered to and have paid a total of $5,250,000.00 in penalties (the "Distribution Fund"). See Diamond's Final Judgment, Neil's Final Judgment, Mendes' Final Judgment.

On October 18, 2016, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Distribution Fund.

On November 4, 2016, the Court created a Fair Fund for the $5,250,000.00 paid by Diamond, Mendes, and Neil to be distributed to harmed investors and appointed Kurtzman Carson Consultants as the Distribution Agent to oversee the distribution of the Fair Fund. See Order to Establish Fair Fund and Appoint a Distribution Agent.

For more information, please contact the Distribution Agent:

Kurtzman Carson Consultants, LLC, Daniel Marotto
Telephone Number: 415-798-5948
Email: dmarotto@Kccllc.com
Website: www.kccllc.com