The Beverly Hills-based FAT Brands Inc. may not be a household name, but it’s certainly well-known in the food and restaurant industries. Countless everyday consumers have unknowingly frequented Fat venues, which include iconic eating establishments such as Johnny Rockets, Fatburger, Round Table Pizza, and steakhouses such as Bonanza and Ponderosa. Lesser known but regionally popular franchised restaurants include Hurricane Grill and Wings, with 30 locations in Florida alone, as well as the Marble Slab Creamery ice cream chain, Yalla Mediterranean, Twin Peaks, and Smokey Bones, once listed as one of the best restaurants in America by celebrity chef Robert Irvine.
As a global franchising company, FAT Brands sits in the crosshairs of multiple official entities, including the U.S. Securities and Exchange Commission (SEC), which filed its own fraud charges on May 10. Targeted in the SEC indictment are FAT, Wiederhorn, and Hershinger, plus former CFO, Ron Roe. Cited violations, occurring from October 2017 to March 2021, revolve around disclosures of personal expenses by Wiederhorn, to the tune of $27 million. The complaint alleges the use of FAT assets for luxury vacations, private flights, a Rolls Royce Phantom, a piano, credit card debts, and even paying mortgages.
Widerhorn has also been charged with a firearms violation for reportedly harboring a firearm and ammunition, which is illegal due to a former 2004 felony conviction. He previously served 16 months for charges involving a pension scheme defrauding investors of up to $160 million.