Los Angeles, CA, October 13, 2025
News Summary
Federal prosecutors have indicted Fat Brands, the parent company of Fazoli’s, along with three executives including former CEO Andrew Wiederhorn, on felony charges connected to a $47 million sham loan scheme. The investigation, led by the SEC, FBI, and IRS, claims that Wiederhorn engaged in fraud to deceive shareholders and evade taxes. Following the indictment, the company’s stock plummeted by 25%. Fat Brands has denied the allegations and plans to vigorously contest the charges.
Los Angeles, CA – Federal prosecutors in Los Angeles have indicted Fat Brands, the parent company of Fazoli’s, on felony charges related to a $47 million “sham loan” scheme that allegedly defrauded shareholders. The indictment also names three individuals linked to the company, including former CEO Andrew Wiederhorn.
Fat Brands, a publicly traded company, acquired Fazoli’s in November 2021. Known for its affordable Italian dishes and famous for free breadsticks, Fazoli’s operates its headquarters on Palumbo Drive in Lexington, Kentucky. With a portfolio that also includes brands such as Fatburger, Johnny Rockets, and Ponderosa and Bonanza Steakhouses, Fat Brands has quickly expanded since its formation…