SEC Files Fraud Charges Against Fat Brands Founder Wiederhorn

The SEC filed fraud charges against Fat Brands, its founder Andrew Wiederhorn and two ex-CFOs concerning the company’s disclosures about related-person transactions with Wiederhorn and his family.

• The complaint alleges that, from October 2017 through March 2021, Wiederhorn used almost $27 million of Fat’s cash on his personal expenses, including private jets, first-class airfare, luxury vacations, his rent and mortgage payments, shopping, and jewelry
• Fat, which owns restaurant brands including Fatburger, Johnny Rockets, and Twin Peaks, is down 24%

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Hari Govind in San Francisco at hgovind@bloomberg.net

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