Latest news with #Schleifer
Yahoo
03-05-2025
- Business
- Yahoo
Fired federal prosecutor claims ex-Fatburger CEO's 'smears' reached White House
A former burger chain CEO under federal indictment on gun and fraud charges now faces another accusation: Allegedly spreading "smears" that reached the White House through conservative pundits, leading to the prosecutor who was handling his case getting fired. The latest claim was leveled by Adam Schleifer, formerly an assistant U.S. attorney in Los Angeles, in a filing last week with the Merit Systems Protection Board, which handles wrongful termination appeals from federal workers. Schleifer's filing called his dismissal "unlawful" and alleged it was motivated in part by his prosecution of Andrew Wiederhorn, the former chairman and chief executive of Fat Brands, which owns the Fatburger and Johnny Rockets restaurant chains. Wiederhorn has maintained his innocence in the criminal cases, and his lawyers declined to comment on Schleifer's allegations. Schleifer's recent filing included a one-line email in March, sent to him "on behalf of President Trump," notifying him he was being removed from his job. Schleifer, who had publicly criticized Trump in years past 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 Times, came an hour after right-wing activist Laura Loomer publicly called for it — a timeline Schleifer cited in his filing. Read more: White House ordered firing of L.A. federal prosecutor on ex-Fatburger CEO case, sources say The claim by the former prosecutor — who declined to comment when reached this week — drew a line between how the events unfolded and his work on the Wiederhorn case. Wiederhorn was indicted last May on federal charges alleging a $47-million 'sham loan' scheme. He was also charged with illegally possessing a firearm and ammunition after being previously convicted of a felony. He has pleaded not guilty in both cases. In his filing, Schleifer said he was fired on the basis of "smears, which originated with and were promoted by Mr. Wiederhorn, his defense team, and that of his codefendant FAT Brands, Inc." Lawyers representing Fat Brands did not respond to a request for comment. The White House and the U.S. Department of Justice did not respond to inquiries. Originally from Portland, Ore., Wiederhorn graduated from USC and, at age 21, founded the investment firm Wilshire Credit Corp. Billionaire philanthropist Eli Broad was one of his first financial backers, investing $300 million, according to a 2013 Times article. In 1990, Wiederhorn moved back to Portland, where he founded investment company Fog Cutter Capital. According to The Times, Wiederhorn was worth 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 obtain evidence in the ongoing case. The recent indictment against Wiederhorn alleged that he caused Wilshire Credit Corp. to issue him approximately $65 million in shareholder loans. Prosecutors have stated they plan to introduce evidence at trial later this year regarding those 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 said in a recent pretrial motion. Wiederhorn ultimately pleaded guilty in 2004 to charges of paying an illegal gratuity to his associate and filing a false tax return. He spent 15 months in prison and paid a $2-million fine. The day before 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 think of a board that has ever so disgraced the principles of corporate governance by overpaying a CEO even as he sits in prison.' Wiederhorn previously told The Times that his attorneys had advised him that his actions were legitimate business deals. Upon his release from prison in 2005, Wiederhorn became chief executive of Fatburger. He went on a public relations campaign to restore his and his family's reputations, including an appearance on 'Undercover Boss' at a Fatburger restaurant in Mesa, Ariz. "I've always adamantly denied doing anything wrong intentionally,' Wiederhorn told The Times 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." The latest federal investigation into Wiederhorn began around 2021 and involved a dawn raid on his home that December. Based on an affidavit alleging the CEO had engaged in tax and wire fraud, authorities searched the residence and found a pistol and ammunition in his closet, according to court filings. Wiederhorn is banned from possessing firearms because of his past conviction. At a court hearing last month, Wiederhorn's defense team told the judge the gun belonged to one of his sons. In 2023, Wiederhorn publicly announced he was stepping down as CEO, framing it as a way to "eliminate the distraction" of the ongoing federal probe. Weeks later, according to federal authorities, Wiederhorn 'removed every director other than himself' from the board of Fat Brands and 'reconstituted' a new board with directors 'under his control." The board now includes three of Wiederhorn's children. Last year, in May, 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 millions in taxes by hiding his true income. Read more: Ex-Fatburger boss used company funds for Rolls-Royce and other luxuries in $47-million scheme, indictment says Company money — categorized as 'shareholder loans' — was allegedly disbursed to Wiederhorn and his family 'for their personal benefit,' according to the indictment. Some of that money went toward private-jet travel, ski trips, a Rolls-Royce Phantom and other luxury automobiles, a jewelry collection and a baby grand piano, federal prosecutors say. According to the indictment, Wiederhorn 'had no intention of repaying these sham 'loans.' ' The indictment cited a September 2020 email, in which Wiederhorn said that in addition to his disclosed annual salary of approximately $400,000, he received "$3m-4m of distributions from my company as loans, then periodically the company forgives those loans." 'Mr. Wiederhorn consulted and followed the advice of world-class professionals in all of his business dealings,' Nicola Hanna, Wiederhorn's attorney, previously told The Times. '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 company's former chief financial officer, Rebecca D. Hershinger, and his outside accountant, William J. Amon, who were also charged in the 22-count indictment. Both have pleaded not guilty. Fat Brands has also been charged. Brian Hennigan, counsel for Fat Brands Inc., previously told The Times the charges were 'unprecedented, unwarranted, unsubstantiated and unjust." Schleifer, whose father is the co-founder and chief executive of Regeneron Pharmaceuticals, started with the U.S. attorney's office in 2016. He prosecuted drug trafficking and fraud cases before quitting in 2019 to run for an open congressional seat in New York's 17th District. During his congressional bid, in which he finished second in the Democratic primary, Schleifer on social media attacked Trump's tax policies and behavior toward federal investigators. In one 2020 tweet, Schleifer accused Trump of eroding constitutional integrity 'every day with every lie and every act of heedless, narcissistic corruption.' In his filing last week contesting his firing, Schleifer referred to his postings on social media as "First-Amendment-protected political advocacy." According to the filing, it was Wiederhorn's lawyer Hanna — then serving as U.S. attorney appointed by Trump — who rehired Schleifer in 2020. After his return to the federal prosecutor's office in L.A., Schleifer was assigned an ongoing investigation of Wiederhorn and others. In the recent challenge to his firing, Schleifer accused Wiederhorn and his defense team of commissioning a tabloid news article attacking his work and urging officials to remove him from the case and his job as a prosecutor. Schleifer also alleged in his filing a March 17 meeting held between the U.S. attorney's office and Wiederhorn's counsel, including Hanna, in 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." Read more: Trump's axing of L.A. federal prosecutor part of broader war on perceived legal enemies At the meeting, according to the filing, the defense team brought up Schleifer's critical comments about Trump on social media. Schleifer accused Wiederhorn and his defense team of providing those same social media posts to White House officials and other "tabloid and 'citizen' journalists." Schleifer alleged he was removed from his position "on the basis of these smears." Wiederhorn's securities fraud trial is scheduled for Oct. 28. His lawyers successfully argued for a continuance in the firearms case, citing the fact that the 9th Circuit Court of Appeals is reviewing a ruling on gun rights for nonviolent convicted felons. The trial is set for Jan. 20, 2026. Times staff writers Matt Hamilton and Laura J. Nelson contributed to this report. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Yahoo
29-04-2025
- Politics
- Yahoo
Ex-Fed Prosecutor Challenges Firing Carried Out For ‘Unprecedented' ‘Political Reasons'
A career federal prosecutor who was fired without reason last month in yet another stunning breach of the Justice Department's independence from the White House is now challenging what he is calling an unlawful dismissal. Late last month, Los Angeles-based federal prosecutor Adam Schleifer was dismissed in an email that came directly from a White House official, with no apparent reason for the firing provided, the New York Times reported. At the time of his firing, Schleifer had been working on a case against the founder of Fatburger, Andrew Wiederhorn, who has been a donor to political action committees that have stood behind Trump. And notably, right before he was fired, conspiracy theorist Laura Loomer shared a post on X, surfacing old posts from Schleifer from before he was working as a government lawyer that were critical of Trump. 'Why is Biden holdover @AdamSchleiferNY Adam Schleifer still working for the US Attorney's office under the new Trump administration? He is a Trump hater who has been working at the US Attorney's office since 2021,' Loomer said. 'Fire him. He supported the impeachment of President Trump and said he wanted to repeal Trump's tax plan.' 'We need to purge the US Attorney's office of all leftist Trump haters,' Loomer continued. Trump's DOJ has consistently been taking cues from Loomer and other MAGA celebrities and conspiracy theorists, allowing them to influence decisions regarding who gets dismissed and what the department decides to investigate. This retaliatory firing was of note at the time because it came directly from the White House, eliminating even the appearance of Justice Department independence from the President — a norm that has eroded entirely since the start of Trump's second term. Now, in a new filing with the U.S. Merit Systems Protection Board — an independent agency devoted to protecting the rights of federal workers — Schleifer is pushing back against his firing, saying he was fired as part of a retribution campaign for his comments made before he was a federal prosecutor, the AP was first to report. 'Nothing in Mr. Schleifer's conduct as a private citizen would cast any doubt on his commitment to defend the Constitution and the rule of law and to advance the impartial administration of justice,' the filing, which was obtained by the AP, reads. The firing was carried out for 'unprecedented partisan and political reasons,' Schleifer reportedly argued in the filing. 'The White House, in coordination with the Department of Justice, has dismissed more than 50 U.S. Attorneys and Deputies in the past few weeks. The American people deserve a judicial branch full of honest arbiters of the law who want to protect democracy, not subvert it,' White House press secretary Karoline Leavitt told TPM in an emailed statement at the time of the unprecedented firing. Federal prosecutors are, of course, part of the executive branch, not the judicial branch of government.
New York Times
29-04-2025
- Politics
- New York Times
Justice Dept. Firings Prompt a Torrent of Legal Fights
Dozens of fired Justice Department lawyers are fighting their dismissals in court, part of a growing tsunami of legal cases arising from the Trump administration's quest to slash the size of the government and rein in what the president and his advisers call the 'deep state.' In just three months in office, the Trump administration has carried out mass firings across the government, provoking court battles over the parameters of executive power. At the Justice Department, the dismissals have been far more targeted, going after senior career officials who have served in administrations of both parties, as well as prosecutors who worked on investigations of President Trump and the Jan. 6, 2021, attack on the Capitol. More than four dozen former Justice Department employees are appealing their dismissals to administrative judges — in what some experts in employment law consider a crucial new test of long-established law that may ultimately be settled by the Supreme Court. Last week, Adam Schleifer, a federal prosecutor in Los Angeles who was abruptly fired last month, filed legal papers challenging his dismissal. Mr. Schleifer, who handled white-collar investigations, was informed of his ouster by a brief email from the White House — an unheard-of circumstance for generations of Justice Department lawyers. Former federal employees seeking to fight their dismissals must first file appeals with the Merit Systems Protection Board, where administrative judges weigh the reasons for the firings before issuing rulings. Those rulings, however, can be appealed to federal courts in Washington. The merit board's mission is to uphold civil service protections, which are intended to ensure competence and fairness in government. Federal case law has long held that civil servants may not be fired for partisan reasons, for blowing the whistle on misconduct or simply to clear out positions to fill with loyalists. The Trump administration is now testing those precedents and principles. In a typical year, there are about 5,000 such appeals filed by fired or disciplined federal workers. This year, there have already been more than 10,000, and thousands more are expected. The spike in cases is a direct product of the Trump administration's aggressive efforts to push the limits of employment law, raising concerns among employment lawyers that the system will be swamped by a wave of litigation. Mr. Schleifer was targeted by a far-right activist named Laura Loomer, who branded him a 'Biden holdover' on social media because five years ago he had run for office as a Democrat. After losing that campaign, Mr. Schleifer returned to the Justice Department as a career prosecutor. In his appeal, Mr. Schleifer said he was given no reason for his dismissal, and he highlighted how unusual it was for a line prosecutor to be fired by a White House official. The same filing did note, however, that shortly before his dismissal, lawyers for a defendant he was prosecuting — Andrew Wiederhorn, the founder of Fatburger — argued that he should be removed from the case because his work reflected a 'woke' and 'Biden' bias. Mr. Schleifer argued in his filing that his dismissal the same month set a damaging precedent. A firing, the filing stated, 'for unprecedented partisan and political reasons also undermines a bedrock principle of our system of justice: that the federal prosecutor is not a partisan political actor, but has a duty to prosecute without fear or favor.' In another closely watched case, the Justice Department is seeking to consolidate the appeals of a number of fired senior Justice Department officials. Those include Elizabeth G. Oyer, who was dismissed as the department's pardon attorney shortly after resisting pressure from above to restore gun ownership rights to the actor Mel Gibson, a prominent supporter of Mr. Trump. Ms. Oyer has said she was retaliated against for taking a principled position, making her a whistle-blower of wrongdoing within the department. Todd Blanche, the deputy attorney general, has denied her claims. In Ms. Oyer's case, the department is arguing she was fired along with several other senior officials on the same day, and therefore all of their appeals should be grouped together. 'These cases invoke almost identical factual scenarios and issues of law,' a lawyer for the Justice Department, Eric Daniels, wrote in a court filing that also asked for the proceedings to be halted while the judge considers their request. In an interview, Ms. Oyer denounced what she called a stalling tactic. 'The Justice Department is trying to run out the clock,' she said. 'They are using tactics that appear intended to delay the proceeding as much as possible and avoid providing any meaningful information.' While the people pressing these cases are fighting for their jobs, their careers and their reputations, the cases could have significant consequences for the Justice Department and the country, Ms. Oyer said. The department's political leaders 'are trying to clear the way to install political loyalists throughout the department by firing the career experts who are standing in the way of their political agenda, and they're doing it in a manner that is plainly in violation of federal civil service laws,' she said. 'If they are able to get away with that, they are going to eliminate all of the career experts in the department who have deep knowledge about critical issues that are facing the department and our nation.' A Justice Department spokesman declined to comment.
Hamilton Spectator
28-04-2025
- Politics
- Hamilton Spectator
Ex-Justice Department prosecutor challenges his firing by the White House after Laura Loomer post
WASHINGTON (AP) — A former career Justice Department prosecutor is challenging his firing by the White House, saying it was for 'unprecedented partisan and political reasons' and undermines a 'bedrock principle' of the justice system after he was dismissed following a post by right-wing activist Laura Loomer. Adam Schleifer, an assistant U.S. attorney in Los Angeles, was fired without explanation last month in an email from a White House official. It came exactly one hour after Loomer, a conservative internet personality known for incendiary comments, called for his removal in a social media post highlighting his past critical views about Trump while running in a Democratic primary for a New York congressional seat. In a filing with the Merit Systems Protection Board — which is responsible for protecting government employees from political reprisals — Schleifer argues he was unlawfully fired in retaliation for protected political speech from a time when he wasn't working as a government lawyer. He's seeking reinstatement, back pay and other relief. 'Nothing in Mr. Schleifer's conduct as a private citizen would cast any doubt on his commitment to defend the Constitution and the rule of law and to advance the impartial administration of justice,' Schleifer said in the filing obtained by The Associated Press. Schleifer declined to comment to the AP on Monday. An email seeking comment was sent to the White House. At the time of his firing, Schleifer was working on a corporate & securities fraud strike force at the U.S. attorney's office in Los Angeles. He was prosecuting a fraud case against Andrew Wiederhorn, the former CEO of Fat Brands Inc., who donated during the presidential campaign to groups supporting Trump. While dozens of Justice Department lawyers have resigned, been pushed out or fired in the weeks since Trump took office, Schleifer's firing was highly unusual because it was carried out by the White House rather than department leadership. Unlike political appointees, rank-and-file career prosecutors usually stay across presidential administrations and have civil service protections designed to shield them from firings for political reasons. Loomer has set out to identify members of the administration she has deemed insufficiently loyal to the president's agenda . Shortly after Schleifer's termination, Trump fired some National Security Council officials after Loomer met with the president in the Oval Office and raised concerns about staff loyalty.
Yahoo
28-04-2025
- Politics
- Yahoo
Ex-Justice Department prosecutor challenges his firing by the White House after Laura Loomer post
WASHINGTON (AP) — A former career Justice Department prosecutor is challenging his firing by the White House, saying it was for 'unprecedented partisan and political reasons' and undermines a 'bedrock principle' of the justice system after he was dismissed following a post by right-wing activist Laura Loomer. Adam Schleifer, an assistant U.S. attorney in Los Angeles, was fired without explanation last month in an email from a White House official. It came exactly one hour after Loomer, a conservative internet personality known for incendiary comments, called for his removal in a social media post highlighting his past critical views about Trump while running in a Democratic primary for a New York congressional seat. In a filing with the Merit Systems Protection Board — which is responsible for protecting government employees from political reprisals — Schleifer argues he was unlawfully fired in retaliation for protected political speech from a time when he wasn't working as a government lawyer. He's seeking reinstatement, back pay and other relief. 'Nothing in Mr. Schleifer's conduct as a private citizen would cast any doubt on his commitment to defend the Constitution and the rule of law and to advance the impartial administration of justice,' Schleifer said in the filing obtained by The Associated Press. Schleifer declined to comment to the AP on Monday. An email seeking comment was sent to the White House. At the time of his firing, Schleifer was working on a corporate & securities fraud strike force at the U.S. attorney's office in Los Angeles. He was prosecuting a fraud case against Andrew Wiederhorn, the former CEO of Fat Brands Inc., who donated during the presidential campaign to groups supporting Trump. While dozens of Justice Department lawyers have resigned, been pushed out or fired in the weeks since Trump took office, Schleifer's firing was highly unusual because it was carried out by the White House rather than department leadership. Unlike political appointees, rank-and-file career prosecutors usually stay across presidential administrations and have civil service protections designed to shield them from firings for political reasons. Loomer has set out to identify members of the administration she has deemed insufficiently loyal to the president's agenda. Shortly after Schleifer's termination, Trump fired some National Security Council officials after Loomer met with the president in the Oval Office and raised concerns about staff loyalty.
