The former CEO of Fat Brands, the company that owns Fatburger and Johnny Rockets, allegedly stole $47 million from the company. Andrew “Andy” Wiederhorn had been under investigation by the Federal Government for years. He pleaded not guilty on all counts and was given a $1 million bail. His property in Beverly Hills, Los Angeles, California, will secure the bail.
The scheme reportedly involved an outside accountant and the Chief Financial Officer of Fat Brands. The scheme was simple enough: Weiderhorn received distribution funds to his personal account disguised as shareholder loans that were never paid back. This is completely illegal, as he did not declare the distribution and attempted to conceal it. This also counts as tax evasion since the IRS claims he never paid taxes on the distributed funds.
Andy Weiderhorn allegedly used the ill-gotten funds to purchase private jet travel, vacations, a Rolls Royce Phantom, other luxury automobiles, jewelry, and a piano. The specific Rolls Royce mentioned has an MSRP of just under $500,000.
SOURCES:
Ex-Fatburger boss indicted in $47-million ‘sham loan’ scheme – Los Angeles Times
Former Fatburger CEO Andrew Wiederhorn used company money to buy Rolls Royce and other items in $47M scheme, indictment says – ABC7 Los Angeles
Fatburger parent company, chairman charged in alleged fraud scheme
Fatburger CEO Andrew Wiederhorn investigated by the feds for financial fraud
Former Fatburger CEO Indicted in $47 Million Loan Fraud Scheme | News | westsidecurrent.com
Fatburger CEO on what he learned on “Undercover Boss” – YouTube
