The founder and former CEO of the parent company behind fast-food chains like Fatburger and Hot Dog on a Stick, was indicted on federal charges in connection to an alleged tax evasion scheme in which $47 million of reportable income went unreported, prosecutors announced.

Former Fat Brands Inc. CEO Andrew Wiederhorn, 58 of Beverly Hills, was indicted by a federal grand jury on Thursday, according to United States Attorney Martin Estrada. Widerhorn is still the controlling shareholder of the publicly traded company.

That unreported income came in the form of “shareholder loans” that were paid out to Wiederhorn and his family without the need of collateral, interest payments or any other requirements of a typical corporate loan, the indictment says.

Prosecutors claim that Wiederhorn himself determined the amount, timing and forgiveness of the “sham loans” without informing the board of directors of Fat Brands and another former affiliate company. He had no intention of repaying the loans, the indictment says.

“This defendant, the former CEO of a publicly traded company, is alleged to have engaged in a long-running scheme to defraud investors and the United States Treasury to the tune of millions of dollars,” said Estrada. “Instead of looking out for shareholders, the defendant allegedly treated the company as his personal slush fund, in violation of federal law. “The Corporate and Securities Fraud Strike Force of my office focuses on rooting out corporate malfeasance by corporate insiders, and we will continue to protect the public by bringing these important prosecutions.”

The misappropriated funds, prosecutors say, were used to purchase luxuries like “private-jet travel, vacations, a Rolls Royce Phantom, other luxury automobiles, jewelry and a piano.”

According to prosecutors, Wiederhorn is charged with “one count of endeavoring to obstruct the administration of the Internal Revenue Code, six counts of tax evasion, and one count of false statements and omission of material facts in statements to accountants in connection with audits and reviews.”

Other associates close to Wiederhorn charged in the indictment include William J. Amo, who provided him with tax advisory, and former Fat Brands CFO Rebecca D. Hershinger.

In addition to the tax charges, Wiederhorn was issued a second indictment on allegations that he illegally possessed a firearm and ammunition as a convicted felon. He served 15 months in prison and was ordered to pay $2 million in fines after pleading guilty to charges of paying an illegal gratuity to an associate and to filing a false tax return in 2004, according to the Los Angeles Times.

In a statement to KTLA, Wiederhorn’s attorney Nicola Hanna, Partner at Gibson Dunn, called the charges “wrong.”

“These charges are wrong on both the facts and the law. Mr. Wiederhorn consulted and followed the advice of world-class professionals in all of his business dealings,” Hanna said. “He has led an extraordinarily successful company that has performed beyond expectations since the merger of FAT Brands and Fog Cutter Capital in 2020. We look forward to making clear in court that this is an unfortunate example of government overreach – and a case with no victims, no losses and no crimes.”

As CEO of Fat Brands, Wiederhorn oversaw brands such as Round Table Pizza, Fatburger and Johnny Rockets.

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