Title: Former CEO of Fat Brands Indicted on Charges of Tax Evasion, Allegedly Misappropriating $47 Million

In a major development, Andrew Wiederhorn, the founder and former CEO of the parent company behind popular fast-food chains like Fatburger and Hot Dog on a Stick, has been indicted on federal charges related to an alleged tax evasion scheme. According to prosecutors, Wiederhorn failed to report $47 million of his income, which came in the form of "shareholder loans" without collateral or interest payments.

The indictment, announced by United States Attorney Martin Estrada, accuses Wiederhorn of orchestrating a long-running scheme to defraud investors and the United States Treasury. Allegedly, Wiederhorn used the unreported income for personal luxuries, including private-jet travel, vacations, luxury cars, jewelry, and even a piano.

Prosecutors claim that Wiederhorn single-handedly determined the amount, timing, and forgiveness of these "sham loans" without informing the board of directors of Fat Brands or another former affiliate company. The indictment states that he had no intention of repaying the loans, thereby violating federal law.

"This defendant, the former CEO of a publicly traded company, is alleged to have engaged in a long-running scheme to defraud investors and the United States Treasury to the tune of millions of dollars," stated Estrada. "Instead of looking out for shareholders, the defendant allegedly treated the company as his personal slush fund."

In addition to the tax-related charges, Wiederhorn faces allegations of illegal possession of a firearm and ammunition as a convicted felon. The former CEO had previously served 15 months in prison and was ordered to pay $2 million in fines after pleading guilty to charges of paying an illegal gratuity and filing a false tax return in 2004.

Other individuals charged in the indictment include William J. Amo, who provided tax advisory services to Wiederhorn, and Rebecca D. Hershinger, the former CFO of Fat Brands. The charges against Wiederhorn include one count of obstruction of the Internal Revenue Code's administration, six counts of tax evasion, and one count of making false statements while being audited.

Responding to the charges, Wiederhorn's attorney, Nicola Hanna, Partner at Gibson Dunn, refuted the allegations, stating that the charges were "wrong both on the facts and the law." Hanna argued that Wiederhorn had sought advice from top professionals in all business dealings and insisted that the case was an example of government overreach.

As CEO of Fat Brands, Wiederhorn oversaw several well-known restaurant brands, including Round Table Pizza, Fatburger, and Johnny Rockets. The indictment marks a significant setback for the company and raises concerns about the alleged misappropriation of funds by its former leader.

The news of the indictment sends shockwaves through the corporate world, emphasizing the importance of rooting out corporate malfeasance. The Corporate and Securities Fraud Strike Force continues its efforts to protect the public by bringing prosecutions against those involved in such acts.