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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCEO of Fat Brands (Johnny Rockets, Fatburger) took $47 million in sham loans, not planning to pay them back
Fat Brands stock craters after company, chair Andy Wiederhorn charged in $47 million 'sham' loan scheme
Fat Brands and its chair Andy Wiederhorn were indicted for a "sham" loan scheme that netted him $47 million.
Wiederhorn, 58, stepped down as CEO last year following the company's disclosure that the U.S. Securities and Exchange Commission was investigating him.
Fat Brands' portfolio includes Fatburger, Johnny Rockets and Twin Peaks.
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As chief executive of Fat Brands, Wiederhorn, 58, allegedly directed the company to loan its own funds to him, with no intention of ever paying the "sham" loans back, according to the indictment.
The SEC alleges that Wiederhorn then used the cash to pay for private jets, first-class airfare, luxury vacations, mortgage and rent payments, plus nearly $700,000 in "shopping and jewelry."
Wiederhorn stepped down as CEO last year, following the company's disclosure that the SEC was investigating him. In February, Fat Brands disclosed it had received a Wells notice from the agency, meaning the SEC was planning to take action against it.
Wiederhorn's alleged fraud accounted for roughly 44% of Fat Brands' revenue between 2017 and 2021, which meant the company often was not able to pay its bills. In those situations, Wiederhorn would allegedly redirect funds from credit cards paid for by Fat Brands back to the company with assistance from his son Thayer, who was then the company's chief marketing officer and is now its chief operating officer.
https://www.msn.com/en-us/money/companies/fat-brands-stock-craters-after-company-chair-andy-wiederhorn-charged-in-47-million-sham-loan-scheme/ar-BB1maCda37
lapfog_1
(29,823 posts)the 1950s themed burger joint that is usually found in the food court in second rate casinos.
The burgers are not great, not the worst but far from the best.
Twin Peaks... a cut rate Hooters and favorite haunt of biker gangs...
jmowreader
(51,165 posts)Theres only two in my area - the Kalispel Tribe of Indians, who owns the Northern Quest Casino, bought a franchise and installed one in the casino and another in North Spokane and getting to either is a bit of a hassle so I dont go much, but theyre one of the few burger joints who sees chili as a proper burger topping. Which it is.
BlueWaveNeverEnd
(9,653 posts)Midnight Writer
(22,723 posts)TexasBushwhacker
(20,591 posts)like here, he'll owe taxes AND penalties AND interest. This is clearly fraud, so they will put him in prison.