CEO Reappointed After Prison Term

Andrew A. Wiederhorn has been reappointed chairman and chief executive officer of Fog Cutter Capital Group, Portland, Ore., after a 14-month leave of absence during which he served a federal prison term for unlawful payment of a gratuity and filing a false tax return.Mr. Wiederhorn will take the reins of Fog Cutter, a commercial real estate mortgage brokerage, from Donald J. Berchtold, who will remain as a director and senior vice president, the company said. Mr. Wiederhorn contended that the government's prosecution, which involved the activities of Wilshire Financial Services Group (now Beverly Hills Bancorp), had been improper. One of his attorneys, Marc Blackman, said the "obscure statute" under which the prosecution was brought "disregards good faith," and that the government had never argued that Mr. Wiederhorn acted against the best interests of the company. "On the contrary, it acknowledged that Wilshire's attorney approved the transaction," he said. "The government just dug in its heels, relying on a case that says that's all irrelevant."