PORTLAND, Ore. — A former Portland businessman who was imprisoned nearly 18 months for pension fraud allegations is now the CEO of a Los Angeles-based restaurant company and is hoping to raise $24 million by selling stock in his product.
The Oregonian/OregonLive reports (http://bit.ly/2wTP6EE ) that Andy Wiederhorn recently began a roadshow for FAT Brands, which is the parent company of the Fatburger fast-food chain. He says he’s confident the famous 2001 Portland scandal that lurks in his past will not scare off investors. Wiederhorn co-founded and led Wilshire Financial Services Group in the 1990s, but the group’s lenders yanked their financing, causing Wilshire to crash into bankruptcy.
The bankruptcy led to the collapse of Capital Consultants, which loaned millions to Wilshire.
The union pension funds that had entrusted their money to Capital Consultants lost an estimated $350 million.
Information from: The Oregonian/OregonLive, http://www.oregonlive.com