Former Fat Brands CEO Indicted for $47 Million Tax Evasion Scheme

Former Fat Brands CEO Indicted for  Million Tax Evasion Scheme

A federal grand jury has indicted Andrew A. Wiederhorn, the former CEO of Fat Brands, Inc., for his alleged involvement in a long-running scheme to distribute $47 million of shareholder funds disguised as loans to himself, in an attempt to evade taxes. The indictment, announced by the U.S. Department of Justice’s Los Angeles office on Friday, May 10, accuses Wiederhorn of conspiring with the company’s CFO, Rebecca D. Hershinger, and accountant William J. Amon, to conceal the disbursements over a period of more than ten years.

According to the indictment, Wiederhorn utilized the company funds, which were reported as shareholder loans, to finance personal expenses such as private jet travel, vacations, luxury automobiles, jewelry, and even a piano. By categorizing these disbursements as loans, Wiederhorn allegedly evaded paying millions of dollars in taxes.

The charges also allege that multiple transfers of hundreds of thousands of dollars were made from Fat Brands accounts to settle Wiederhorn’s personal American Express credit card debts. Prosecutors claim that these so-called company loans were never repaid and were effectively “forgiven” by the company, allowing Wiederhorn to generate net operating losses and obtain favorable tax treatment.

Wiederhorn now faces charges including tax evasion, obstruction of the Internal Revenue Code, false statements, and wire fraud. Hershinger, along with Wiederhorn, is charged with additional counts of false statements, wire fraud, and certifying faulty financial reports. Amon, the accountant who provided tax-advisory services, is charged with aiding and assisting the filing of false tax returns.

In response to the indictment, Fat Brands issued a statement calling the charges “unprecedented, unwarranted, unsubstantiated, and unjust.” The company emphasized that the alleged conduct occurred over three years ago and highlighted their cooperation with the investigation.

Additionally, Wiederhorn faces a separate indictment for illegally possessing a firearm and ammunition, as he had previously been convicted of a felony.

Author: CrimeDoor

2 Responses

  1. I am really passionate about criminal justice reform and ensuring that our legal system is fair and just for all individuals. Reading about this federal grand jury indictment reminds me of the importance of holding individuals accountable for their actions.

    In light of this topic, my personal goal is to educate myself more about the criminal justice system and the various issues surrounding it. I want to understand the complexities of the legal process, including how grand juries work and their role in the indictment process.

    Additionally, I plan to actively engage

  2. I remember reading about a similar case a few years ago where a high-profile individual was indicted by a federal grand jury. It was a shocking revelation because this person had always been seen as a respected figure in their industry.

    The news broke out one morning, and it spread like wildfire. People couldn’t believe that someone they admired and looked up to could be involved in such illegal activities. It was a stark reminder that appearances can be deceiving, and we never truly know what goes on behind closed doors

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