FAT - Why Is Restaurant Operator Fat Brands Stock Tanking Today? | Benzinga
The Justice Department has charged Fat Brands Inc (NASDAQ:FAT) and its chair Andrew Wiederhorn, alleging a scheme to conceal $47 million in distributions he received in the form of shareholder loans from the IRS, FAT's minority shareholders, and the broader investing public.
Wiederhorn, the former CEO and current controlling shareholder of Fat Brands is expected to be arraigned this afternoon in U.S. District Court in downtown Los Angeles.
“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,” said U.S. Attorney Martin Estrada.
Separately, the U.S. Securities and Exchange Commission filed a civil enforcement action against Wiederhorn, FAT’s former CFO ...