Andy Wiederhorn, former CEO of Fatburger.
CNBC
The Ministry of Justice abandons its file against Grasses and its Andy Wiederhorn chair.
In May 2024, the company and Wiederhorn were charged by a large federal jury in Los Angeles for wire fraud, tax evasion and other charges related to what the prosecutors alleged was a “simulated” loan regime which reported to Wiederhorn $ 47 million.
On Tuesday, federal prosecutors filed a desire to rejection of all the accusations against Wiederhorn, two other people and the catering company owner of Fatburger, Johnny Rockets and large American cookies.
Wiederhorn has maintained his innocence since he was charged. He was already convicted about two decades ago for producing a false declaration of income and paying an illegal gratuity to a partner, serving more than a year in federal prison.
“With this indictment behind us, I can’t wait to focus on continuous growth and the success of fat marks,” he said in a statement.
Wiederhorn resigned from his post as CEO of Fat Brands in 2023 after the company revealed that the American Securities and Exchange commission investigated him. The big brands and Wiederhorn have not resolved the distinct civil complaint of the SEC resulting from the same alleged conduct which sparked the accusations of the Ministry of Justice.
Prosecutors also asked the Federal Court to reject separate criminal accusations taken from Wiederhorn to be a federal criminal in possession of a handgun and ammunition.
The reversal of the DoJ comes after the agency’s reshuffle after the start of President Donald Trump’s second term. In March, the White House dismissed Adam Schleifer, the American assistant lawyer in Los Angeles who led the accusation against Wiederhorn. Schleifer later alleged that his dismissal was the result of a smear campaign against him led by Wiederhorn.
Despite turnover, officials of the Ministry of Justice in California told Oregonian in April that the accusation against big brands and Wiederhorn would continue.
Months earlier, the company donated $ 100,000 to the Trump inauguration fund.
Fat Brands’s shares climbed 7% Wednesday morning to news. The action has a market capitalization of less than $ 43 million.