The U.S. Attorney for the Central District of California filed a motion on Tuesday to dismiss all charges against Andy Wiederhorn, Fat Brands, former CFO Rebecca Hershinger and William Amon, an accountant who has advised Wiederhorn, Fat Brands said in a press release.
Wiederhorn, former CEO and current board chairman at Fat Brands, was indicted by a grand jury indictment in May 2024 over an alleged loan scheme involving the transfer of about $47 million from Fat Brands and Fog Cutter Capital to Wiederhorn for personal use.
The Securities and Exchange Commission also sued Wiederhorn but that lawsuit may be dropped as well. On April 10, the SEC filed a motion to stay its case, pending the conclusion of criminal proceedings in the DOJ case.
The SEC and DOJ began requesting documents from Fat as part of investigations into Wiederhorn in 2022.
Fat Brands said that Wiederhorn and his legal team consistently argued that he is innocent and that “the events described involved no criminal conduct, no victims and no financial losses.”
“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,” Nick Hann, attorney at Gibson Dunn and counsel to Wiederhorn, said in a statement.
Before the 2022 investigations, Wierderhorn regularly contributed modest sums, in the low thousands of dollars, to Donald Trump’s electoral campaigns and to the Republican National Committee, Federal Elections Commissions contributor records show. After the federal investigations began, Wiederhorn’s contributions grew to several tens of thousands of dollars, including $13,200 in donations less than a month before the 2024 election.
With the indictment dismissed, Wiederhorn said that he looks “forward to focusing on the continued growth and success of FAT Brands.”
Fat Brands, which will report its second quarter earnings on Wednesday, has a development pipeline of more than 1,000 units and 2,300 locations globally. Year-to-date, the company has signed 120 development agreements, and it expects more than 100 store openings this year. In early July, Fatburger signed a 40-store, 10-year deal with a franchisee in Florida, marking a major expansion for the chain.
