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Fat Brands CEO Wiederhorn Indicted for $47M Tax Dodge
LOS ANGELES – In a brazen scheme to conceal millions, former Fat Brands Inc. CEO Andrew A. Wiederhorn, 67, of Beverly Hills, has been indicted on federal charges of evading taxes and defrauding investors, the Justice Department announced today.
Wiederhorn, the controlling shareholder of the publicly traded company, allegedly disguised $47 million in distributions to himself as shareholder loans, while causing Fat Brands to violate the Sarbanes-Oxley Act. The indictment, returned Thursday by a federal grand jury, alleges that Wiederhorn, with the assistance of his CFO and outside accountant, repeatedly evaded taxes and the law to avoid accountability to shareholders.
“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’s co-defendants include William J. Amon, 65, of Los Angeles, a certified public accountant and attorney; Rebecca D. Hershinger, 51, of the Los Angeles area, Fat Brands’ former CFO; and Fat Brands Inc., the publicly traded global franchising company based in Beverly Hills.
The indictment alleges that Wiederhorn began disguising distributions to himself as shareholder loans approximately 30 years ago, when he served as CEO of Wilshire Credit Corporation. After forgiving himself $65 million in putative debts owed to WCC, Wiederhorn pleaded guilty in 2004 to payment of illegal gratuities and fines.
“The allegations contained in the indictment against Mr. Wiederhorn show that he is a serial tax cheat,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “His actions over decades hurt not only his company and its shareholders, but also every American taxpayer.”
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.
The indictment charges Wiederhorn with one count of conspiracy to commit tax evasion and one count of tax evasion, each carrying a maximum penalty of five years in prison. Amon, Hershinger, and Fat Brands Inc. are also charged with various counts of tax evasion and conspiracy.
Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: Official Source ↗
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