Backdoor Backstreet Boys Raid
Written by Alyx on February 15th, 2007 in Florida, celebrities, culture.
Welcome to this episode of Lifestyles of the Rich and Grifting… with your host Lou Pearlman, now under investigation for securities fraud. Lou is best known for bringing you such fine talent as the Backstreet Boys:
He was also responsible for throwing together the band O-Town for a TV show. I went to high school with one of these guys:
ORLANDO, Florida (Reuters) - U.S. agents on Thursday raided the home and offices of boy-band impresario Lou Pearlman, known for launching ‘N Sync and the Backstreet Boys, as part of a criminal investigation, officials said.
Pearlman has already been sued by the state of Florida for alleged securities fraud involving an employee investment program.
Federal prosecutors and the FBI were investigating “various allegations leveled against Mr. Pearlman and his entities,” U.S. Attorney’s Office spokesman Steve Cole said.
According to the state lawsuit, Pearlman’s companies for 15 years have sold unregistered securities in what was called an “employee investment savings account” program, committing securities fraud by implying the money was safe and insured.
But like a Ponzi scheme, according to the complaint, early investors were paid $118 million in dividends from deposits by more recent investors, while $7 million was paid in sales commissions and $50 million went to Pearlman and two other defendants.
It ain’t no lie, if you invested with Pearlman, kiss your money bye-bye-bye.
Pearlman is no stranger to federal investigations; in 2003 he was investigated for charging hundreds of actors and models $1,500 to be featured on his talent-agency website from which no one actually found work. Maybe they would’ve been better off recording music demos with Pearlman’s fine product “Making the Hit”:
February 16th, 2007 at 9:26 pm
It’s about time. I knew something was shady about this guy when he had the Backstreet boys sing a contract making him the “6th backstreet boy” and entitling him to 1/6 of all earnings….dispite what relationship they had. That’s wrong. (granted, they signed the contract but still…that’s not the point. Everyone should have been leary of this guy when BOTH the backstreet boys and NSYNC turned around and sued him.
February 17th, 2007 at 3:20 pm
Pearlman is a piece of shit!
February 17th, 2007 at 4:26 pm
How much political money did Crist receive from Pearlman? Very interested to find
out. Crist must be held accountable and do the right thing for the investors who
Pearlman ripped-off. Flood his office with emails, faxes, calls, etc. Demand
answers. Why did the State of Florida let Pearlman get away with this type of scam.
The state did not follow through on an investigation years ago when Crist was the
AG. Now he is Gov. Is Crist in Pearlman’s pocket?
Email: Charlie.Crist@myflorida.com
Phone: 850-488-7146
Fax: 850-487-0801
Mailing Address:
Office of the Governor
The Capitol
Tallahassee, FL 32399-0001
February 18th, 2007 at 11:11 am
I’m shocked. Look how much good Pearlman has done for Church Street.
/end sarcasm
February 23rd, 2007 at 10:59 am
Lou Pearlman is dildos…