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#Fat Brands CEO says ‘personal history’ prompted investigation by feds

“Fat Brands CEO says ‘personal history’ prompted investigation by feds”

Fatburger CEO Andrew Wiederhorn spoke out for the first time since it was disclosed last month that the federal government is investigating him and his family for alleged financial crimes.

The former felon said on a Fat Brands earnings call this week that “given my personal history it does not surprise me that the government will look into allegations. He said that “being a public company and a public figure attracts its share of visibility.”

About 20 years ago, Wiederhorn served 15 months in prison for filing a false tax return and paying an illegal gratuity to a business associate. He paid $2 million in restitution at the time — though the board of his company Fog Cutter Capital paid him $2 million while he was behind bars — prompting Nasdaq to delist Fog Cutter.

He described the current investigation as a “distraction personally,” saying that it “primarily focuses on me and my family” and that “any monetary settlement goes to Fat Brands,” which is not the subject of the investigation.

In February, the company disclosed in a regulatory filing that its CEO is under investigation by the Securities and Exchange Commission and the US Attorney’s Office for the Central District of California. 

Andrew Wiederhorn seated at a table.
Andrew Wiederhorn served 15 months in prison for filing a false tax return and paying out an illegal gratuity.
CBS via Getty Images

The government notified the company of the investigation in December, when investigators raided the Beverly Grove home of Wiederhorn’s son, Thayer, and his wife, Brooke Wiederhorn — hauling away “clothing, digital devices, backpacks, wallets, briefcases, purses and bags,” according to the court document.

Brooke is the daughter of “The Real Housewives of Beverly Hills” star Kim Richards, and her 2014 wedding to Thayer was featured on the show.

The government was looking for evidence of alleged securities fraud, conspiracy to commit wire fraud, money laundering and tax evasion, according to the search warrent.

The government alleges that funds were improperly exchanged between Wiederhorn’s Fog Cutter Capital Group and Fat Brands, the company that owns Fatburger, Johnny Rockets and a dozen other brands and that was merged with Fog Cutter in 2020.

Brooke Wiederhorn with her face pressed against her mother's.
Brooke Wiederhorn with her mother Kim Richards, who stars in “The Real Housewives of Beverly Hills.”
WireImage
Thayer Wiederhorn with his wife, Brooke, their child and Brooke's mother Kim Richards standing in a barn.
Thayer Wiederhorn with his wife, Brooke, their child and Brooke’s mother Kim Richards.
Instagram/@kimrichards11

On the earnings call, Wiederhorn said the government is ‘now formally seeking documents concerning these matters from the company and me.” 

He also complained about the court documents being made public because they were the subject of a sealed court order, he said.

“Our business is selling burgers, shakes and fries, pizza and meatballs, cookies and ice cream, steaks and chicken wings and 29-degree cold beer to our customers,” he said on the earnings call. “They are coming into our restaurants more than ever and spending more than ever before. I look forward to being able to put these matters behind us.”

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