SUMMARY OF THE DEPOSITION OF HEIDI DIAZ, PART TWO
Assets and Income of Heidi Diaz
Heidi Diaz stated that her sole source of income in 2007 was income generated from Kimkins.com, benefits from SDI, alimony, and income from foster care. Although she announced that Halcyon Web, LLC was the new owner in October 2007, she claimed at the time of her deposition that Halcyon did not have any cash. She claimed that her Kimkins business did not have any assets other than its computers. She claimed that Halcyon Web LLC does not own other websites. She does own a number of domain names related to Kimkins.com. She owns no other corporation, limited liability company, or interest in any partnership. Other than her corporate assets, she merely has her house and her car. She never checked to see if her assets were actually attached prior to her deposition. She does not keep track of her money and does not balance her checkbook. Since her PayPal account was frozen, she did open a CCBill account. She now accepts checks. She said that she had her Medicare benefits terminated and cannot afford medical insurance at this time. She filed a tax return in 2006, but did not pay federal taxes.
Heidi Diaz did produce financial records, which were marked as confidential and cannot be discussed in this document at this time.
Additional Acts of Fraud and Asset Concealment
Heidi Diaz was shown additional screenshots of individuals who were featured on the Kimkins.com website as success stories. She admitted that she took pictures of various women on the internet and placed said picture on the Kimkins.com website along with text on how these women purportedly lost weight as a result of the Kimkins diet. Models who were provided names such as Destiny, Raquel, Jasmine, Gretchen, and Petr were not users of the Kimkins diet and their photos had been misappropriated from other websites.
She also admitted to passing a rumor that Jessica Alba was using the Kimkins diet and she knew that was a false statement. She admitted that repeating the rumor that Jessica Alba originally used the Kimkins diet to lose weight was deceptive.
She admitted making certain false statements to administrators and members of Kimkins.com. As an example, Exhibit 57 falsely revealed that Kimmer and Heidi Diaz were best friends since high school. She also stated that in October of 2007, Kimkins.com did not have any money despite the fact that the company had $1 million in assets in the bank. Also in Exhibit 57, she misrepresented the fact that she had partners.
In an email response regarding this case, Kimmer made the following statement: “before I left, I thought I would share with you my thinking. I won’t know for sure until Monday until I talk to an attorney, but if worse comes to worse, we can close Kimkins.com and a lawyer can fight over the carcass. He probably thinks it is a large company.”
In connection with the email marked as Exhibit 57, she admitted to implying to Jeannie Baitinger that the company did not have any money despite the fact that the company had $1 million in liquid assets. In the same email, she stated that the database would be moved to a new domain name, “www.???.com and move the forums, members and everything there.”
She was aware that Jeannie Baitinger, Delaney Deaver, and Christin Sherburne were going to be on the Mike and Juliet Show on Fox TV on November 12, 2007.
Q: “Did you view this particular program as an opportunity to get new members for Kimkins?”
A: “No. actually, I thought it would have the opposite effect.”
Exhibit 65 is an email from Heidi Diaz to Jeannie Baitinger and Delaney Deaver dated November 9, 2007 that discussed the Mike and Juliet Show. Ms. Diaz said in the email: “I expect we will get many new members from the TV exposure,“...”Shhh, the lawyer is sniffing around for money $$$”
Heidi admitted that she wasn’t lying to Ms Baitinger and Ms. Deaver, but was actually giving a motivational speech in an email for their benefit. Finally, she admitted she was not telling the truth.
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