Trump Donor Wiederhorn Reaches Deal With SEC in FAT Brands Case

The Securities and Exchange Commission has reached a deal to resolve corporate fraud allegations against Trump donor Andrew Wiederhorn and FAT Brands Inc., according to Tuesday court filings.

If accepted by regulators and a federal judge, the agreement would mark the end of ongoing legal proceedings involving Wiederhorn, who is the founder and chairman of the parent company of brands like Fatburger and Johnny Rockets and was called a “serial tax cheat” by prosecutors in 2024. The filings didn’t include the deal’s terms.

The proceedings attracted attention after many media reports that the White House fired lead prosecutor Adam Schleifer in March. Bill Essayli moved to end Wiederhorn’s criminal prosecution in one of his final actions as interim US attorney.

Prosecutors justified dropping charges by citing shifting enforcement priorities. They said in August that the pending SEC action would be a way “to address potential violations of the law.”

Wiederhorn was accused in the SEC’s 2024 complaint of using nearly $27 million of FAT Brands’ cash on private jets, luxury vacations, and other personal expenses, while telling auditors, directors, and investors that neither he nor his family had an interest in the franchising company’s cash. He allegedly disguised the expenses as loans to a FAT affiliate that Wiederhorn also controlled. The businessman had two decades prior pleaded guilty to two federal felony counts related to his business dealings.

The Delaware Chancery Court on Dec. 17 approved a $10 million settlement of separate investor claims alleging FAT Brands’ board stood aside and allowed for Wiederhorn’s “looting” of the business.

The parties will submit the proposed terms to the US District Court for the Central District of California after getting approval from the Commission, which could take up to 90 days, the filings said, asking Judge Mark Scarsi to pause proceedings until March 30.

The case is Securities and Exchange Commission v. FAT Brands Inc, C.D. Cal., No. 2:24-cv-03913, 12/23/25.