{"id":56203,"date":"2024-05-11T16:12:56","date_gmt":"2024-05-11T23:12:56","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=56203"},"modified":"2024-05-11T17:20:08","modified_gmt":"2024-05-12T00:20:08","slug":"former-ceo-and-shareholder-of-fat-brands-inc-former-cfo-and-a-tax-advisor-indicted-for-allegedly-scheming-to-concel-47-m-the-indictment-issued-by-a-federal-grand-jury-on-thursday-charges-andrew-a","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=56203","title":{"rendered":"Former CEO publicly traded Fat Brands Inc. Indicted for Allegedly Hiding $47 Million from IRS"},"content":{"rendered":"

\u00a0LOS ANGELES<\/span><\/strong>\u00a0<\/span><\/span><\/p>\n

\"\"Andrew A. Wiederhorn, the former CEO and current primary shareholder of publicly traded Fat Brands Inc. (FAT), has been indicted on federal charges. According to the Justice Department, Wiederhorn is accused of hiding $47 million in payments he received as shareholder loans from the IRS, FAT\u2019s minority shareholders, and the broader investment community officials.<\/span><\/p>\n

A federal grand jury on Thursday indicted Andrew A. Wiederhorn for hiding millions in compensation and taxable income with the help of FAT’s chief financial officer and his external accountant at Andersen advisory firm<\/span><\/p>\n

Additionally, Wiederhorn is accused of evading substantial tax payments and prompting FAT Brands Inc. to breach the Sarbanes-Oxley Act, which prohibits public companies from offering direct or indirect personal loans to their CEOs.<\/span><\/p>\n

\u201cThe indictment alleges that with the assistance of his co-defendants, Mr. Wiederhorn repeatedly evaded his taxes and the law as he engaged in a cover-up to avoid being accountable to shareholders,\u201d said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. \u201cRather than continuing to fund his lavish lifestyle, Mr. Wiederhorn will face serious consequences for his alleged criminal actions.\u201d<\/span><\/p>\n

Wiederhorn\u2019s attorney, Nicola Hanna, Partner at Gibson Dunn, called the charges \u201cwrong\u201d in a statement to KTLA in Los Angeles.<\/a><\/span><\/p>\n

\u201cThese charges are wrong on both the facts and the law. Mr. Wiederhorn consulted and followed the advice of world-class professionals in all of his business dealings,\u201d Hanna said. \u201cHe has led an extraordinarily successful company that has performed beyond expectations since the merger of FAT Brands and Fog Cutter Capital in 2020. We look forward to making clear in court that this is an unfortunate example of government overreach \u2013 and a case with no victims, no losses and no crimes.\u201d<\/span><\/p>\n

As CEO of Fat Brands, Wiederhorn oversaw brands such as Round Table Pizza, Fatburger and Johnny Rockets.<\/span><\/p>\n

\"\"\u201cThe allegations contained in the indictment against Mr. Wiederhorn show that he is a serial tax cheat. His actions over decades hurt not only his company and its shareholders, but also every American taxpayer,\u201d said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. \u201cFailing to honestly and accurately report income shortchanges Americans, and places undue strain on honest taxpayers. CI is committed to investigating this sort of criminal behavior to ensure accountability and equity in the tax system.\u201d<\/span><\/p>\n