Operations
While the criminal charges brought by the U.S. Department of Justice against Wiederhorn and FAT Brands have been dismissed, the SEC’s civil fraud charges are pending.
Photo: Fat
July 29, 2025
Federal charges alleging that Andrew Wiederhorn, chairman of FAT Brands Inc., was involved in a $47 million “sham loan” scheme have been dismissed by the U.S. Department of Justice. The U.S. Attorney for the Central District of California filed a motion to dismiss the charges against Wiederhorn as well as FAT Brands, former CFO Rebecca Hershinger and Ron Amon, who had provided tax-advisory services to Wiederhorn.
The 2024 indictment accused Wiederhorn, assisted by Hershinger and Amon, of concealing millions in reportable compensation and taxable income and evading millions in taxes. Federal prosecutors had alleged he treated the company as his “personal slush fund.”
Separately, the U.S. Securities and Exchange Commission had filed fraud charges against Wiederhorn, FAT Brands, and former CFOs Ron Roe and Rebecca Hershinger. These allegations claimed that from October 2017 through March 2021, Wiederhorn used almost $27 million of FAT’s cash for personal expenses, including private jets and first-class travel, by allegedly disguising them as company loans to FAT’s affiliate, Fog Cutter Capital Group. The SEC had also alleged that Wiederhorn’s scheme stripped FAT of approximately 40% of its revenue, at times leaving the company unable to pay its own bills.
While the criminal charges brought by the U.S. Department of Justice against Wiederhorn and FAT Brands have been dismissed, the SEC’s civil fraud charges are a separate matter. The SEC is seeking injunctions, civil penalties, disgorgement with prejudgment interest and officer and director bars against Wiederhorn, Roe and Hershinger.
Despite the previous accusations, Wiederhorn and his legal team consistently maintained his innocence, arguing that the events involved no criminal conduct, no victims and no financial losses.
“From day one, we have maintained Andy’s innocence,” Nick Hanna, of Gibson Dunn, counsel for Wiederhorn and the former U.S. Attorney for the Central District of California, said in a company press release. “We are extremely grateful that the U.S. Attorney’s Office listened to our arguments and determined, in the interests of justice, that all charges should be dropped.”
Douglas Fuchs, also of Gibson Dunn and counsel to Wiederhorn, added, “We have said from the beginning that this is a case with no victims, no losses, and no crimes. Today, the U.S. Attorney took the appropriate step of dismissing the indictment.”
Wiederhorn said he was grateful to the U.S. Attorney’s Office for taking a fresh look at this case and to the attorneys who worked tirelessly on his case.
“With this indictment behind us, I look forward to focusing on the continued growth and success of FAT Brands,” he said in the release.
Although Wiederhorn, who stepped down as CEO nearly two years ago after disclosing that the U.S. Securities and Exchange Commission was investigating him, declined to comment if he’d return to a more hands-on role within the brand now that the DOJ matter was concluded,his team said the brand plans to focus on its continued growth.
FAT Brands, a global restaurant franchising company with 18 restaurant concepts and over 2,300 locations worldwide, has over 1,000 units in its development pipeline, nearly 120 signed development agreements year-to-date and over 100 store openings anticipated by year’s end.
Wiederhorn pleaded guilty over 20 years ago in U.S. District Court in Oregon to charges of paying an illegal gratuity to an associate and filing a false tax return. He served 15 months in prison and paid a $2 million fine.
