Fired federal prosecutor claims ex-Fatburger CEO's 'smears' reached White House

A erstwhile burger concatenation CEO nether national indictment connected weapon and fraud charges present faces different accusation: Allegedly spreading “smears” that reached the White House done blimpish pundits, starring to the authoritative who was handling his lawsuit getting fired.

The latest assertion was leveled by Adam Schleifer, formerly an adjunct U.S. lawyer successful Los Angeles, successful a filing past week with the Merit Systems Protection Board, which handles wrongful termination appeals from national workers.

Schleifer’s filing called his dismissal “unlawful” and alleged it was motivated successful portion by his prosecution of Andrew Wiederhorn, the erstwhile president and main enforcement of Fat Brands, which owns the Fatburger and Johnny Rockets edifice chains.

Wiederhorn has maintained his innocence successful the transgression cases, and his lawyers declined to remark connected Schleifer’s allegations.

Schleifer’s caller filing included a one-line email successful March, sent to him “on behalf of President Trump,” notifying him helium was being removed from his job.

Schleifer, who had publically criticized Trump successful years past erstwhile helium was not employed arsenic a prosecutor, claims helium was fired for his “engagement successful constitutionally protected governmental activity.”

His firing, first reported by The Times, came an hr aft right-wing activistic Laura Loomer publically called for it — a timeline Schleifer cited successful his filing.

The assertion by the erstwhile authoritative — who declined to remark erstwhile reached this week — drew a enactment betwixt however the events unfolded and his enactment connected the Wiederhorn case.

Wiederhorn was indicted past May connected national charges alleging a $47-million “sham loan” scheme. He was besides charged with illegally possessing a firearm and ammunition aft being antecedently convicted of a felony. He has pleaded not blameworthy successful some cases.

In his filing, Schleifer said helium was fired connected the ground of “smears, which originated with and were promoted by Mr. Wiederhorn, his defence team, and that of his codefendant FAT Brands, Inc.”

Lawyers representing Fat Brands did not respond to a petition for comment. The White House and the U.S. Department of Justice did not respond to inquiries.

Who is Andrew Wiederhorn?

Originally from Portland, Ore., Wiederhorn graduated from USC and, astatine property 21, founded the concern steadfast Wilshire Credit Corp. Billionaire philanthropist Eli Broad was 1 of his archetypal fiscal backers, investing $300 million, according to a 2013 Times article.

In 1990, Wiederhorn moved backmost to Portland, wherever helium founded concern institution Fog Cutter Capital. According to The Times, Wiederhorn was worthy an estimated $140 cardinal by the precocious ‘90s.

In 2000, aft Magic Johnson took an involvement successful Fatburger, Fog Cutter helped concern the alteration of ownership for the company, past bought a controlling involvement 3 years aboriginal for $7 million.

Federal authorities began investigating Wiederhorn successful the 2000s, allegedly for taking retired shareholder loans without intending to repay them, according to an April authorities filing successful the Central District of California opposing Wiederhorn’s efforts to get grounds successful the ongoing case.

The caller indictment against Wiederhorn alleged that helium caused Wilshire Credit Corp. to contented him astir $65 cardinal successful shareholder loans. Prosecutors person stated they program to present grounds astatine proceedings aboriginal this twelvemonth regarding those loans.

“The authorities investigated those loans successful the aboriginal 2000s, and yet concluded it could not complaint Mr. Wiederhorn with immoderate transgression due to the fact that of overwhelming grounds helium relied connected astatine slightest 2 antithetic taxation advisors erstwhile reporting the loans connected his taxation returns and frankincense lacked the requisite intent to defraud,” Wiederhorn’s attorneys said successful a caller pretrial motion.

Wiederhorn yet pleaded blameworthy successful 2004 to charges of paying an amerciable gratuity to his subordinate and filing a mendacious taxation return. He spent 15 months successful situation and paid a $2-million fine.

The time earlier Wiederhorn‘s plea, Fog Cutter awarded him a $2-million bonus and agreed to support paying him during his incarceration.

The statement prompted New York Times columnist Nicholas Kristof to bestow connected Wiederhorn his inaugural “award for greed,” writing: “I can’t deliberation of a committee that has ever truthful disgraced the principles of firm governance by overpaying a CEO adjacent arsenic helium sits successful prison.”

Wiederhorn antecedently told The Times that his attorneys had advised him that his actions were morganatic concern deals.

Upon his merchandise from situation successful 2005, Wiederhorn became main enforcement of Fatburger. He went connected a nationalist relations run to reconstruct his and his family’s reputations, including an quality connected “Undercover Boss” astatine a Fatburger edifice successful Mesa, Ariz.

“I’ve ever adamantly denied doing thing incorrect intentionally,” Wiederhorn told The Times successful 2017. “I’m precise grateful for it. I felt similar I paid the fine. I did the time. I did everything I was expected to bash to marque this spell distant and enactment it down me.”

What are the latest charges?

The latest national probe into Wiederhorn began astir 2021 and progressive a dawn raid connected his location that December.

Based connected an affidavit alleging the CEO had engaged successful taxation and ligament fraud, authorities searched the residence and recovered a pistol and ammunition successful his closet, according to tribunal filings.

Wiederhorn is banned from possessing firearms due to the fact that of his past conviction. At a tribunal proceeding past month, Wiederhorn’s defence squad told the justice the weapon belonged to 1 of his sons.

In 2023, Wiederhorn publically announced helium was stepping down arsenic CEO, framing it arsenic a mode to “eliminate the distraction” of the ongoing national probe. Weeks later, according to national authorities, Wiederhorn “removed each manager different than himself” from the committee of Fat Brands and “reconstituted” a caller committee with directors “under his control.” The committee present includes 3 of Wiederhorn’s children.

Last year, successful May, a national expansive assemblage indicted Wiederhorn implicit an alleged $47-million “sham loan” scheme, which prosecutors accidental dates to 2010. Authorities accused Wiederhorn of evading millions successful taxes by hiding his existent income.

Company wealth — categorized arsenic “shareholder loans” — was allegedly disbursed to Wiederhorn and his household “for their idiosyncratic benefit,” according to the indictment. Some of that wealth went toward private-jet travel, skis trips, a Rolls-Royce Phantom and different luxury automobiles, a jewelry postulation and a babe expansive piano, national prosecutors say.

According to the indictment, Wiederhorn “had nary volition of repaying these sham ‘loans.’ ”

The indictment cited a September 2020 email, successful which Wiederhorn said that successful summation to his disclosed yearly wage of astir $400,000, helium received “$3m-4m of distributions from my institution arsenic loans, past periodically the institution forgives those loans.”

“Mr. Wiederhorn consulted and followed the proposal of world-class professionals successful each of his concern dealings,” Nicola Hanna, Wiederhorn’s attorney, antecedently told The Times. “We look guardant to making wide successful tribunal that this is an unfortunate illustration of authorities overreach — and a lawsuit with nary victims, nary losses and nary crimes.”

Wiederhorn was allegedly assisted by the company’s erstwhile main fiscal officer, Rebecca D. Hershinger, and his extracurricular accountant, William J. Amon, who were besides charged successful the 22-count indictment. Both person pleaded not guilty.

Fat Brands has besides been charged.

Brian Hennigan, counsel for Fat Brands Inc., antecedently told The Times the charges were “unprecedented, unwarranted, unsubstantiated and unjust.”

Who is Adam Schleifer?

Schleifer, whose begetter is the co-founder and main enforcement of Regeneron Pharmaceuticals, started with the U.S. attorney’s bureau successful 2016. He prosecuted cause trafficking and fraud cases earlier quitting successful 2019 to tally for an unfastened legislature spot successful New York’s 17th District.

During his legislature bid, successful which helium finished 2nd successful the Democratic primary, Schleifer connected societal media attacked Trump’s taxation policies and behaviour toward national investigators.

In 1 2020 tweet, Schleifer accused Trump of eroding law integrity “every time with each prevarication and each enactment of heedless, narcissistic corruption.”

In his filing past week contesting his firing, Schleifer referred to his postings connected societal media arsenic “First-Amendment-protected governmental advocacy.”

According to the filing, it was Wiederhorn’s lawyer Hanna — past serving arsenic U.S. lawyer appointed by Trump — who rehired Schleifer successful 2020. After his instrumentality to the national prosecutor’s bureau successful L.A., Schleifer was assigned an ongoing probe of Wiederhorn and others.

In the caller situation to his firing, Schleifer accused Wiederhorn and his defence squad of commissioning a tabloid quality nonfiction attacking his enactment and urging officials to region him from the lawsuit and his occupation arsenic a prosecutor.

Schleifer besides alleged successful his filing a March 17 gathering held betwixt the U.S. attorney’s bureau and Wiederhorn’s counsel, including Hanna, successful which the second allegedly “sought Mr. Schleifer’s removal from the cases connected the mistaken, unethical, and improper grounds that his and the Office’s enactment connected those cases reflected a ‘woke,’ ‘DEI,’ and ‘Biden’ bias.”

At the meeting, according to the filing, the defence squad brought up Schleifer’s captious comments astir Trump connected societal media. Schleifer accused Wiederhorn and his defence squad of providing those aforesaid societal media posts to White House officials and different “tabloid and ‘citizen’ journalists.”

Schleifer alleged helium was removed from his presumption “on the ground of these smears.”

Where bash the Wiederhorn cases stand?

Wiederhorn’s securities fraud proceedings is scheduled for Oct. 28.

His lawyers successfully argued for a continuance successful the firearms case, citing the information that the 9th Circuit Court of Appeals is reviewing a ruling connected weapon rights for nonviolent convicted felons.

The proceedings is acceptable for Jan. 20, 2026.

Times unit writers Matt Hamilton and Laura J. Nelson contributed to this report.