Federal authorities have withdrawn criminal accusations against Andy Wiederhorn, the chairman of Fat Brands, Inc.
In a surprising turn of events, the U.S. Department of Justice has moved to drop charges against Fat Brands Chairman Andy Wiederhorn. The decision, which has been met with controversy, comes after a three-year-long investigation into alleged loan and tax payment issues.
Wiederhorn, who has maintained his innocence since the investigation began, has been a central figure in the case. The charges, filed last year, accused him of concealing $47 million in illicit payments from Fat Brands to himself, his family, or creditors.
However, the U.S. Attorney for the Central District of California has now dismissed the charges, citing no criminal conduct, no victims, and no financial losses involved in the alleged loan scheme. This decision has brought a sense of relief to Wiederhorn, who suggested that he has been a target of federal prosecutors since he pleaded guilty to tax charges in 2004 and spent 16 months in prison.
The investigation has been a cloud over Wiederhorn and Fat Brands for the past three years, causing a significant drop in the company's stock value. Over the past three years, Fat Brands stock has lost about half of its value, largely due to the ongoing investigation.
Despite the dropped charges, Wiederhorn has been in the spotlight for his political donations. According to data from the website Open Secrets, Wiederhorn has donated $28,577 to President Trump, the Republican party, and various GOP candidates since 2019. However, it is important to note that there is no evidence that the dismissal of charges against Wiederhorn was related to his political donations.
Wiederhorn stepped aside as CEO of Fat Brands in an unknown year, and in 2023, the company replaced most of its board of directors with a new slate including several members of the Wiederhorn family.
The case against Wiederhorn has also seen the departure of Adam Schleifer, the assistant U.S. attorney handling the case. Schleifer was fired at the request of the White House, according to the Los Angeles Times. The connection between Schleifer's firing and the dismissal of charges against Wiederhorn remains unclear.
The editor-in-chief of Restaurant Business, a publication that focuses on restaurant finance, mergers and acquisitions, and the economy, has been following the case closely. The publication has highlighted the impact of the investigation on Fat Brands and the quick-service restaurant industry as a whole.
As the dust settles, it remains to be seen how this turn of events will affect Wiederhorn, Fat Brands, and the quick-service restaurant industry moving forward.
[1] Source: [Link to the official statement from the U.S. Attorney for the Central District of California] [2] Source: [Link to the official statement from Fat Brands]
The editor-in-chief of Restaurant Business, a publication focusing on restaurant finance, has been closely following the case against Fat Brands Chairman Andy Wiederhorn, emphasizing its potential impact on the quick-service restaurant industry.
While the dismissed charges against Wiederhorn have brought a sense of relief to him and the company, the investigation has left a significant impact on Fat Brands' business, causing a significant drop in the company's stock value over the past three years.
