Overview
- Federal prosecutors filed unopposed motions on July 30 to drop wire fraud, tax evasion and firearm-possession counts against Andy Wiederhorn, two associates and Fat Brands Inc.
- Wiederhorn was indicted in May 2024 over an alleged $47 million sham loan scheme and has consistently denied wrongdoing while pledging to refocus on corporate growth.
- The dismissal followed the March removal of Assistant U.S. Attorney Adam Schleifer by the White House, prompting questions about political influence on Justice Department decisions.
- A separate Securities and Exchange Commission civil complaint against Fat Brands and Wiederhorn for the same conduct remains active.
- Shares of Fat Brands rose after the announcement as investors reacted to the end of the federal prosecution against the owner of Fatburger, Johnny Rockets and Great American Cookies.