The Oregonian newspaper reports the house in Portland’s West Hills now goes to lender CityMortgage.
Wiederhorn was one of more 10 people indicted in a criminal case stemming from a pension scandal in 2000. He served about 14 months in federal prison after pleading guilty to charges of paying an illegal gratuity and filing a false tax return
He has since moved to Southern California, where he owns the Fatburger chain of fast-food restaurants.
The minimum bid at Wednesday’s auction was $3.6 million — $700,000 less than what Weiderhorn owes the lender.
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