LOS ANGELES – In a brazen scheme to conceal millions from the IRS and minority shareholders, Andrew A. Wiederhorn, the former CEO and current controlling shareholder of Fat Brands Inc., has been indicted on federal charges.
According to the indictment returned Thursday by a federal grand jury, Wiederhorn, 60, of Beverly Hills, allegedly disguised distributions to himself in the form of shareholder loans, amounting to $47 million, approximately 30 years ago. He used these loans to fund his lavish lifestyle, violating federal law and the Sarbanes-Oxley Act’s prohibition on direct and indirect extensions of credit to public-company CEOs in the form of personal loans.
The indictment alleges that Wiederhorn, assisted by FAT’s chief financial officer and his outside accountant at advisory firm Andersen, concealed millions of dollars in reportable compensation and taxable income, evading the payment of millions of dollars in taxes. FAT itself was also found to be in violation of federal law.
“This defendant, the former CEO of a publicly traded company, is alleged to have engaged in a long-running scheme to defraud investors and the United States Treasury to the tune of millions of dollars,” said United States Attorney Martin Estrada. “Instead of looking out for shareholders, the defendant allegedly treated the company as his personal slush fund, in violation of federal law.”
Wiederhorn is not the only one implicated in this scheme. William J. Amon, a 65-year-old certified public accountant, attorney, and one-time managing director of Andersen’s Los Angeles Office, provided tax-advisory services to Wiederhorn, FAT, and FAT’s former affiliate, Fog Cutter Capital Corporation (FOG). Rebecca D. Hershinger, a resident of the Los Angeles area, who formerly served as FAT’s CFO, certified FAT’s public filings, further aiding in the concealment of Wiederhorn’s activities.
The defendants are facing serious consequences for their alleged actions. Wiederhorn is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. The remaining defendants are expected to be arraigned during the first week of June.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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