At Extreme Investor Network, we pride ourselves on delivering the latest and most unique business news content to our readers. Today, we bring you a breaking story involving Fat Brands and its chair, Andy Wiederhorn, that has shocked the business world.
Federal authorities have charged Fat Brands and Andy Wiederhorn with a brazen scheme that allegedly netted him $47 million in bogus loans from the restaurant company that owns popular chains like Fatburger, Johnny Rockets, and Twin Peaks. This shocking revelation has caused shares of Fat Brands to plummet by 27%, resulting in a market value of $92 million for the company.
In addition to the criminal charges filed by a federal grand jury in Los Angeles for wire fraud and tax evasion, the U.S. Securities and Exchange Commission has also accused the company and Wiederhorn of violations related to the alleged scheme. Despite these charges, Fat Brands’ counsel has vehemently denied the accusations, stating that they are unjust and unsubstantiated.
The allegations against Wiederhorn, who was previously convicted in a criminal case involving similar conduct, extend beyond financial crimes. He has been separately charged with being a federal felon in possession of a handgun and ammunition, adding another layer of complexity to the case.
As CEO of Fat Brands, Wiederhorn allegedly directed the company to loan him its own funds, with no intention of repaying the loans. Instead, he used the cash for personal expenses like private jets, luxury vacations, and extravagant shopping sprees. This alleged fraud accounted for a significant portion of Fat Brands’ revenue between 2017 and 2021, leading to financial difficulties for the company.
Furthermore, Wiederhorn’s son Thayer, who was a key figure in redirecting funds back to the company, was also involved in the alleged scheme. The intricate web of financial misconduct at Fat Brands raises serious questions about transparency and accountability within the company.
At Extreme Investor Network, we will continue to monitor this developing story and provide our readers with in-depth analysis and insights into the implications of these charges on Fat Brands and the broader business community. Stay tuned for more exclusive updates and expert commentary on this high-profile case.