A former burger chain CEO below federal indictment on gun and fraud prices now faces one other accusation: Allegedly spreading “smears” that reached the White Home via conservative pundits, resulting in the prosecutor who was dealing with his case getting fired.

The most recent declare was leveled by Adam Schleifer, previously an assistant U.S. legal professional in Los Angeles, in a submitting final week with the Benefit Methods Safety Board, which handles wrongful termination appeals from federal staff.

Schleifer’s submitting referred to as his dismissal “unlawful” and alleged it was motivated partially by his prosecution of Andrew Wiederhorn, the previous chairman and chief government of Fats Manufacturers, which owns the Fatburger and Johnny Rockets restaurant chains.

Wiederhorn has maintained his innocence within the legal instances, and his attorneys declined to touch upon Schleifer’s allegations.

Schleifer, who had publicly criticized Trump in years previous when he was not employed as a prosecutor, claims he was fired for his “engagement in constitutionally protected political activity.”

His firing, first reported by The Instances, got here an hour after right-wing activist Laura Loomer publicly referred to as for it — a timeline Schleifer cited in his submitting.

The declare by the previous prosecutor — who declined to remark when reached this week — drew a line between how the occasions unfolded and his work on the Wiederhorn case.

Wiederhorn was indicted final Might on federal prices alleging a $47-million “sham loan” scheme. He was additionally charged with illegally possessing a firearm and ammunition after being beforehand convicted of a felony. He has pleaded not responsible in each instances.

In his submitting, Schleifer mentioned he was fired on the idea of “smears, which originated with and were promoted by Mr. Wiederhorn, his defense team, and that of his codefendant FAT Brands, Inc.”

Attorneys representing Fats Manufacturers didn’t reply to a request for remark. The White Home and the U.S. Division of Justice didn’t reply to inquiries.

Who’s Andrew Wiederhorn?

Initially from Portland, Ore., Wiederhorn graduated from USC and, at age 21, based the funding agency Wilshire Credit score Corp. Billionaire philanthropist Eli Broad was one in every of his first monetary backers, investing $300 million, in line with a 2013 Instances article.

In 1990, Wiederhorn moved again to Portland, the place he based funding firm Fog Cutter Capital. In keeping with The Instances, Wiederhorn was value an estimated $140 million by the late ‘90s.

In 2000, after Magic Johnson took an interest in Fatburger, Fog Cutter helped finance the change of ownership for the company, then bought a controlling stake three years later for $7 million.

Federal authorities began investigating Wiederhorn in the 2000s, allegedly for taking out shareholder loans without intending to repay them, according to an April government filing in the Central District of California opposing Wiederhorn’s efforts to acquire proof within the ongoing case.

The latest indictment towards Wiederhorn alleged that he triggered Wilshire Credit score Corp. to difficulty him roughly $65 million in shareholder loans. Prosecutors have acknowledged they plan to introduce proof at trial later this 12 months relating to these loans.

“The government investigated those loans in the early 2000s, and ultimately concluded it could not charge Mr. Wiederhorn with any crime because of overwhelming evidence he relied on at least two different tax advisors when reporting the loans on his tax returns and thus lacked the requisite intent to defraud,” Wiederhorn’s attorneys mentioned in a latest pretrial movement.

Wiederhorn in the end pleaded responsible in 2004 to prices of paying an unlawful gratuity to his affiliate and submitting a false tax return. He spent 15 months in jail and paid a $2-million effective.

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

The arrangement prompted New York Times columnist Nicholas Kristof to bestow on Wiederhorn his inaugural “award for greed,” writing: “I can’t consider a board that has ever so disgraced the ideas of company governance by overpaying a CEO at the same time as he sits in jail.”

Wiederhorn beforehand instructed The Instances that his attorneys had suggested him that his actions have been official enterprise offers.

Upon his launch from jail in 2005, Wiederhorn turned chief government of Fatburger. He went on a public relations marketing campaign to revive his and his household’s reputations, together with an look on “Undercover Boss” at a Fatburger restaurant in Mesa, Ariz.

“I’ve always adamantly denied doing anything wrong intentionally,” Wiederhorn instructed The Instances in 2017. “I’m very grateful for it. I felt like I paid the fine. I did the time. I did everything I was supposed to do to make this go away and put it behind me.”

What are the newest prices?

The most recent federal investigation into Wiederhorn started round 2021 and concerned a daybreak raid on his house that December.

Primarily based on an affidavit alleging the CEO had engaged in tax and wire fraud, authorities searched the residence and located a pistol and ammunition in his closet, in line with court docket filings.

Wiederhorn is banned from possessing firearms due to his previous conviction. At a court docket listening to final month, Wiederhorn’s protection group instructed the decide the gun belonged to one in every of his sons.

In 2023, Wiederhorn publicly introduced he was stepping down as CEO, framing it as a method to “eliminate the distraction” of the continuing federal probe. Weeks later, in line with federal authorities, Wiederhorn “removed every director other than himself” from the board of Fats Manufacturers and “reconstituted” a brand new board with administrators “under his control.” The board now consists of three of Wiederhorn’s youngsters.

Final 12 months, in Might, a federal grand jury indicted Wiederhorn over an alleged $47-million “sham loan” scheme, which prosecutors say dates to 2010. Authorities accused Wiederhorn of evading thousands and thousands in taxes by hiding his true revenue.

Firm cash — categorized as “shareholder loans” — was allegedly disbursed to Wiederhorn and his household “for their personal benefit,” in line with the indictment. A few of that cash went towards private-jet journey, ski journeys, a Rolls-Royce Phantom and different luxurious cars, a jewellery assortment and a child grand piano, federal prosecutors say.

In keeping with the indictment, Wiederhorn “had no intention of repaying these sham ‘loans.’ ”

“Mr. Wiederhorn consulted and followed the advice of world-class professionals in all of his business dealings,” Nicola Hanna, Wiederhorn’s legal professional, beforehand instructed The Instances. “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.”

Wiederhorn was allegedly assisted by the corporate’s former chief monetary officer, Rebecca D. Hershinger, and his outdoors accountant, William J. Amon, who have been additionally charged within the 22-count indictment. Each have pleaded not responsible.

Fats Manufacturers has additionally been charged.

Brian Hennigan, counsel for Fats Manufacturers Inc., beforehand instructed The Instances the fees have been “unprecedented, unwarranted, unsubstantiated and unjust.”

Who’s Adam Schleifer?

Schleifer, whose father is the co-founder and chief government of Regeneron Prescription drugs, began with the U.S. legal professional’s workplace in 2016. He prosecuted drug trafficking and fraud instances earlier than quitting in 2019 to run for an open congressional seat in New York’s seventeenth District.

Throughout his congressional bid, during which he completed second within the Democratic major, Schleifer on social media attacked Trump’s tax insurance policies and habits towards federal investigators.

In a single 2020 tweet, Schleifer accused Trump of eroding constitutional integrity “every day with every lie and every act of heedless, narcissistic corruption.”

In his submitting final week contesting his firing, Schleifer referred to his postings on social media as “First-Amendment-protected political advocacy.”

In keeping with the submitting, it was Wiederhorn’s lawyer Hanna — then serving as U.S. legal professional appointed by Trump — who rehired Schleifer in 2020. After his return to the federal prosecutor’s workplace in L.A., Schleifer was assigned an ongoing investigation of Wiederhorn and others.

Schleifer additionally alleged in his submitting a March 17 assembly held between the U.S. legal professional’s workplace and Wiederhorn’s counsel, together with Hanna, during which the latter allegedly “sought Mr. Schleifer’s removal from the cases on the mistaken, unethical, and improper grounds that his and the Office’s work on those cases reflected a ‘woke,’ ‘DEI,’ and ‘Biden’ bias.”

On the assembly, in line with the submitting, the protection group introduced up Schleifer’s crucial feedback about Trump on social media. Schleifer accused Wiederhorn and his protection group of offering those self same social media posts to White Home officers and different “tabloid and ‘citizen’ journalists.”

Schleifer alleged he was faraway from his place “on the basis of these smears.”

The place do the Wiederhorn instances stand?

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

His attorneys efficiently argued for a continuance within the firearms case, citing the truth that the ninth Circuit Court docket of Appeals is reviewing a ruling on gun rights for nonviolent convicted felons.

The trial is about for Jan. 20, 2026.

Instances employees writers Matt Hamilton and Laura J. Nelson contributed to this report.