Fat Brands Chair Andy Wiederhorn Clears Charges Amid DOJ Shake-Up

The US Department of Justice has dropped charges against Fat Brands and its chair Andy Wiederhorn, who were indicted in May 2024 on wire fraud, tax evasion, and other counts related to a "sham" loan scheme. Wiederhorn had maintained his innocence and stepped down as CEO in 2023 after the SEC began investigating him. The reversal comes after the DOJ's shakeup following President Trump's second term.

The U.S. Department of Justice (DOJ) has dropped all charges against Fat Brands and its chair, Andy Wiederhorn. The reversal comes after a significant shake-up within the DOJ following the start of President Donald Trump's second term. The company and Wiederhorn were initially indicted in May 2024 on charges of wire fraud, tax evasion, and other counts related to a "sham" loan scheme that prosecutors alleged netted Wiederhorn $47 million.

Wiederhorn maintained his innocence throughout the proceedings and stepped down as CEO of Fat Brands in 2023 after the U.S. Securities and Exchange Commission (SEC) began investigating him. Despite the DOJ's initial stance, the agency has now dismissed all charges against Wiederhorn and the restaurant company, which owns brands such as Fatburger, Johnny Rockets, and Great American Cookies.

The dismissal of charges comes after the DOJ's shake-up, which included the firing of Adam Schleifer, the assistant U.S. attorney in Los Angeles who led the prosecution against Wiederhorn. Schleifer later alleged that his dismissal was due to a smear campaign led by Wiederhorn. The DOJ's reversal has been attributed to this internal change and the subsequent investigation.

Wiederhorn expressed his relief in a statement, stating that he looks forward to focusing on the continued growth and success of FAT Brands. The stock of Fat Brands climbed 7% on Wednesday morning following the news, reflecting the market's positive reaction to the charges being dropped.

The reversal of the DOJ's charges does not resolve the separate civil complaint from the SEC against Fat Brands and Wiederhorn, which stems from the same alleged conduct. The company has yet to resolve this civil matter.

References:
[1] https://www.nbclosangeles.com/news/business/money-report/doj-drops-charges-against-fat-brands-chair-andy-wiederhorn/3756564/?noamp=mobile&os=roku&ref=app
[2] https://www.cnbc.com/2025/07/30/doj-drops-charges-against-fat-brands-andy-wiederhorn.html
[3] https://www.nbcchicago.com/news/business/money-report/doj-drops-charges-against-fat-brands-chair-andy-wiederhorn/3801290/