FAT Brands, Inc., Andrew Wiederhorn, Ron Roe, Rebecca Hershinger

The Securities and Exchange Commission (SEC) has taken decisive action against FAT Brands Inc., its founder, Andrew Wiederhorn, and former CFOs Ron Roe and Rebecca Hershinger, unveiling a complex web of alleged fraudulent activities. According to the SEC’s complaint filed in the U.S. District Court for the Central District of California, from October 2017 to March 2021, Wiederhorn purportedly diverted nearly $27 million of FAT’s funds for personal use, including extravagant expenses such as private jets and luxury vacations. Collaborating with Roe, Wiederhorn allegedly misrepresented these expenditures as loans to an affiliate company under his control, concealing the diversion of funds. Furthermore, the defendants purportedly made false and misleading statements in SEC filings regarding related person transactions, concealing critical information from investors. The SEC seeks injunctions, civil penalties, disgorgement, and officer and director bars against all defendants. Additionally, the U.S. Attorney’s Office for the Central District of California has announced criminal charges against the accused parties, underscoring the gravity of the allegations. Delve deeper into the intricate details of this case below.