Citibank foreclosed on Andrew Wiederhorn’s mansion Wednesday. Court records show the former Portland investor owed the bank more than $4 million on his West Hills property.
Wiederhorn currently lives in Los Angeles and owns the fast food chain Fatburger.
At the sheriff’s foreclosure auction, investors on cell phones and a woman clutching an envelope of cash bid on several other properties. But no one had the more than $3 million in hand to bid on Wiederhorn’s house. The property now belongs to Citibank.
Ten years ago, Wiederhorn was linked to pension fraud committed by the company Capitol Consultants. He served prison time for a filing a false tax return and another felony charge.
His company, Fog Cutter Capitol Group, was delisted from the NASDAQ after it paid him $4.75 million while he was imprisoned.
Wiederhorn’s attorney, Jim Hiller, says he doesn’t know how his client fell behind on his mortgage. He says Wiederhorn is relieved the bank has taken the house back.
The State of Oregon, the IRS, and a charitable foundation also had claims against the property