Fat Brands Chairman Charged in $47M Fraudulent Loan Scheme

May 10, 2024, 05:15 PM

Federal prosecutors have charged Andy Wiederhorn, the chairman of Fat Brands, in a fraudulent loan scheme involving $47 million. Wiederhorn allegedly misused $27 million for personal expenses and misled shareholders, auditors, and the board. The scheme also reportedly caused Fat Brands, which owns Fatburger, Johnny Rockets, and Twin Peaks, to struggle with paying bills. The SEC has also accused Wiederhorn of misappropriating company funds, which at one point accounted for 40% of its revenue. Fat Brands' counsel stated that the charges are based on conduct that ended over three years ago and highlighted the company's cooperation with the investigation.