Bye, Bye, Bye

Source: Orlando Sentinel

Boy band mogul Lou Pearlman was sentenced this morning to 25 years in federal prison for running a lengthy, systematic con that artificially inflated his net worth and cheated people out of $300 million.

During Pearlman’s sentencing in U.S. District Court this morning, Senior U.S. District Judge G. Kendall Sharp offered Pearlman an incentive to pay back his investors: for every $1 million he puts back in investors’ pockets, he gets one month off of his sentence. Since Pearlman’s sentence is for 300 months, he can avoid prison altogether if he forks up the cash. “I’m going to give you the keys to your jail cell,” Sharp said. But attorneys in the case say it’s unlikely there are any vast sums hidden and the prospect of Pearlman getting out of prison is unlikely.

Pearlman, 53, was once the toast of Orlando. His financial empire included popular musical acts like the Backstreet Boys and ‘N Sync, an airplane charter business, and Church Street Station, an iconic piece of real estate in Orlando’s downtown.

Funny Flag:

Peacock also argued that Pearlman’s opulent lifestyle was a business requirement.”Mr. Pearlman did live large, if you will, but judge, he was in the entertainment business,” Peacock said.

Welcome to Orlando

Home of that damned mouse, among other things. Here’s the news:

Downtown Orlando Panhandling Ban Passes:

Nighttime panhandling is now banned in the city of Orlando. On Monday, the city council gave final approval to a new ordinance banning begging from sunset to sunrise.

Either way, the new ban will go into place on September 27, 2007.

Panhandling during the day in downtown is still limited to areas bound by special blue boxes, even though many of those lines are no longer visible.

Sir you are operating without a blue box. Can I see your panhandling license please?

IKEA Coming To Town:

IKEA recently announced its Orlando store will open Nov. 14.

Michael la Cour, 39, manager of the future IKEA store in Orlando:

For the grand opening, we’re still getting the last hirings into place. We will have a total of about 350 co-workers in the store. The grand opening itself is obviously on Wednesday. There will be the traditional log sawing There will be the raising of the flags, there will be activities, hand outs. There will just be a lot of activities to make it a fun and entertaining day out for the whole family. And as we talked about, the usual flow that has been there are people camping out a few days before, so I would expect that would happen here as well, starting on Monday or Tuesday.

The 309,000-square-foot Ikea Orlando, the company’s 33rd U.S. store and second in Florida, (near Mall at Millenia) will feature 10,000 exclusively-designed items, 48 room settings, three model home interiors, a supervised children’s play area and a 300-seat restaurant.

Will This Be Available?

Orlando ranks eighth in the United States in clogged traffic:

The Orlando region ranks eighth in the United States in traffic congestion, according to a national study by the Texas Transportation Institute. Orlando-areas driver can figure on eating up 54 hours a year while they wait on the clogged roadways. That’s significantly higher than the national average of 38, according to the research center at Texas A&M University.

In a hurry to get nowhere…

Orlando Resort Features ‘Good Girls’ Bachelorette Party Getaways:

Gaylord Palms Resort in Orlando has redefined the bachelorette weekend getaway in Orlando. After brides shared ideas for a bachelorette party in Orlando, Gaylord Palms Resort created a new customizable program that eliminates many of the headaches associated with planning a bachelorette party weekend.

“We’ve all heard about bachelorette parties that have gone wrong,” said Amy Grimes, experience coordinator for the resort’s bachelorette program. “In these days of Google searches and MySpace photo albums, a night of fun is hard to hide from the in-laws. Simply stated…what happens at the bachelorette party doesn’t always stay at the bachelorette party!”

This getaway, which begins at $169 per room based on a 4-room minimum, is an alternative to a traditional bachelorette party, and was developed from feedback of potential users of the package. Because the job of planning the bachelorette party is often delegated to the maid of honor or an overwhelmed best friend, the Gaylord Palms program includes a helping hand from a staff “experience coordinator” to assist with advance planning.

Features include Game Night - a “Truth or Dare” themed game night experience, complete with cocktails and snacks, private exercise class, pedicure party, champagne toast, a movie night, chair massages, or even a visit from a fortune teller.

Well, it certainly does sound gay.

Lou Pearlman Loses His Home:

Boy-band mogul Lou Pearlman is losing his lakefront Orlando home and a New Jersey condominium in bankruptcy proceedings, as he faces separate federal charges of defrauding a bank out of $20 million. A bankruptcy judge Thursday approved the $7.1 million sale of the 9,000-square-foot Orlando home and a $335,000 condominium in Atlantic City, N.J., owned by the man who created the Backstreet Boys and ‘N Sync.

Pearlman, 53, remains jailed after being indicted on three counts of bank fraud and single counts of mail and wire fraud for business he did with Evansville, Ind.-based Integra Bank N.A., according to court documents.

Nooooooooooo! They be stealin my lakefront!!!!!

Source: TampaBay.com
Source: Orlando Sentinel

A former investor in an airship business Pearlman owned in the 1990s, Julian Benscher has agreed to buy three lapsing life-insurance policies, make up delinquent premiums and split the proceeds with bankruptcy creditors if the ex-Orlando music mogul dies. “He is not the fittest-looking person I’ve ever seen,” Benscher, a 41-year-old Brit, said Monday. “I knew the policies were out there and probably were going to lapse. It would be a way to get something back for the [bankruptcy] estate in the event something happens.”

The policies, with premiums totaling $14,186 annually, are:

• A $3 million, 15-year term life policy from Metropolitan Life Insurance Co. with a $6,315 annual premium. Trans Continental Airlines was listed as the beneficiary. It expires in April 2013.
• A $1 million Metropolitan whole life policy with a $4,524 annual premium. Trans Continental Airlines was the beneficiary before it was assigned to the Arthur Sullivan Living Trust as collateral in a 1997 deal.
• A $1 million Metropolitan whole life policy with a $3,347 premium in which Benscher had been the beneficiary before it was changed without his knowledge to F.F. Station LLC, a holding company for the former Church Street Station, which Pearlman controlled.

Benscher knew Pearlman, 53, through the sale of his $1.9 million lakefront Windermere home in 1999. Pearlman defaulted on mortgage payments when he fled the country in January, and an avalanche of lawsuits from creditors and investors followed. It is in foreclosure.

Benscher also said he spent millions investing in and later buying assets from Pearlman’s Orlando-based Airship International blimp-advertising company in the 1990s. He said he loaned Pearlman money and required him to take out a 1997 life-insurance policy to protect his investment.

On June 14, Pearlman was expelled from the Indonesian resort of Bali and handed to U.S. law-enforcement officials who had an arrest warrant for bank fraud. He is being held without bail at the Orange County Jail.

Baby bye, bye, bye

Benscher said he recently checked with Metropolitan Life and discovered he was no long the beneficiary. That triggered inquiries on the other lapsing policies.

“I don’t wish anyone any harm,” said Benscher, who said he was just trying to protect himself and other investors. “It seemed to be the least I could do.”

With all the people Papa Lou Pearlman has pissed off, I personally wouldn’t expect him to last until 2013. But I suspect that if he was whacked, the policies would be null and void.

Lou Pearlman taken into custody by FBI
Source: LOCAL6 (orlando)

Boy-band mogul Lou Pearlman was arrested and taken into custody by FBI agents Thursday morning in Indonesia. Pearlman, who hadn’t been seen or heard from in months, was turned over to U.S. authorities and was being flown to Guam, the nearest U.S. territory, to have an initial apperance before a federal judge, officials said.

Pearlman has not defended himself against a blizzard of lawsuits and two involuntary federal bankruptcy cases against him and his Trans Continental companies. He doesn’t have an attorney in either federal case and was also being investigated by the FBI, the IRS and state authorities.

Pearlman allegedly defrauded individual investors of more than $315 million by selling for years a bogus savings account plan, using their money to cover losses in other businesses. Banks are hounding him and his companies for more than $120 million, according to court documents. Pearlman already lost several companies in February, when a state judge appointed receiver Jerry McHale to take over the books. Four banks filed the involuntary federal bankruptcy cases against Pearlman and his companies March 1.

In the companies, McHale has found few assets and considerable debt. Employees trashed and shredded mounds of documents in late 2006 or early 2007, he told the court, when they believed investigators were close.

The cousin of musician Art Garfunkel, Pearlman was involved in several businesses. He started with a New York flight charter company and later spread into pop music management, restaurants, real estate and talent scouting. Pearlman is best known as a music mogul who pieced together several bubble-gum pop acts that sold millions of records. Pearlman allegedly created around 100 companies but treated them as one — headquartered in the same downtown Orlando office with cross-paid expenses and shared accounts.

It is not entirely clear what finally drove Pearlman into hiding. The telephone and trash bills were not paid for at his office when the state took over. Pearlman’s belongings were auctioned off earlier this week. The auction was populated mostly by middle-aged men, not the screaming young girls who drove Pearlman’s bands to multiplatinum success. The first part of the auction happened in Pearlman’s former office, where he used to court aspiring stars. Dozens of bidders stood elbow-to-elbow and sweated while an auctioneer rambled. A tall, thick man in a Pittsburgh Steelers shirt paid $2,200 for a wall hanging commemorating the Backstreet Boys selling 7 million copies of a record. He declined to be interviewed but said he was still deciding whether to sell it. A key to the city of Orlando that Pearlman was awarded sold for $1,400 — a big raise from the $300 bidding start. Pearlman’s home in a posh Orlando suburb was also to be sold and listed for $8.5 million.

Proceeds will pay off his considerable debt, though authorities are still trying to determine how much that is.

Church Street Station - Can You Go Home Again?

From Tallahassee.com:

Only 1 bid comes in for Church Street Station

ORLANDO - Orlando developer Cameron Kuhn submitted the only bid this morning for the former Church Street Station complex owned by Lou Pearlman’s crumbling business empire. Kuhn offered $34 million, the minimum required by the bankruptcy court judge overseeing the property’s disposition. Kuhn vowed to revive the property, which two decades ago was one of the largest tourist draws in Florida. He didn’t offer specifics on just what he’ll do, but it will be entertainment/restaurant oriented, he said, as was the original Church Street Station. Bob Snow, who created the original Church Street Station 30 years ago, attended the auction and said he hopes Kuhn does right by the property. He noted the property, which has suffered as Pearlman’s financial problems have mounted, has nowhere to go but up.

From the Sentinel:

Mr. Kuhn has done wonders for Orlando’s Skyline - he has been a vital part of downtown’s revitalization. I hope that he, or whoever assumes ownership of this downtown icon, will utilize the unique potential of this area and restore Church Street station to the showcase and pride of Orlando that it once was. Let’s fix the miserable failings of Lou Pearlman. 10 years from now, will we be lamenting the destruction of Orlando’s most memorable destination? Or will we be enjoying the centerpiece of a fantastic downtown area?

***

I don’t know, dudes. “Entertainment/restaurant oriented” ?? That’s what CSS was before, and it died. Pearlman tried to do it the same way, and failed miserably. So let’s just do the same damn thing over again. Yeah, I’m sure it will work this time.

ah, Cameron Kuhn, the fuckhead who built wall street plaza. Gosh, i can’t wait til we have Slingapours II on Church Street - a patron of the former Exchange Lounge

Rosie O’Grady’s - Back in the day