Fat Brands Chairman Indicted in Multi-Million Dollar Fraud Scheme
Andy Wiederhorn, chairman of Fat Brands, faces charges for orchestrating a $47 million fraud, significantly impacting the company's stock and operations.
- Federal charges allege Wiederhorn misused company funds for personal luxuries from 2010 to 2021, leading to a 28% drop in Fat Brands' stock.
- SEC files civil complaint against Fat Brands, highlighting severe financial misconduct that stripped the company of 40% of its revenue.
- Wiederhorn's fraudulent activities included covering personal expenses with 'sham' loans, never intended to be repaid.
- Previous criminal history includes a guilty plea by Wiederhorn for similar financial misconduct two decades ago.
- Fat Brands defends against charges, claiming the allegations are based on outdated actions and asserting their cooperation with the investigation.
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