While you may be thankful that you don’t own stock in Fog Cutter Capital Corp., you may wish you were the former CEO, Andrew Wiederhorn. Mr. Wiederhorn is currently in jail for pension law and income tax felonies at a previous employer. Yet, he is being paid $5.5 million by Fog Cutter in compensation and reimbursement of his previous crimes. Plus, since he owns more than 10% of the public company’s stock, he was paid over $1 million in dividends in January. This by a company that, as of September 30, has a deficit of $123,000,000, cash of $7,000,000 and a loss for the first nine months of 2004 (the latest period shown on their web site) of almost $5,000,000.
Sometimes crime does pay.