Main Page Forum Ringtones SMS Messages Games Free Downloads Contact UsTelepk Map
Make This Page Your Home Page Make TelePK.Com Your Favorite Website Telepk Header
Mobile Zone
  1. PTCL TelePhone Directory
  2. SMS Messages
  3. SmS Jokes
  4. Sms Dictionary
  5. Memory Card Rates
  6. Mobile Phones
  7. Mobile Phone Articles
  8. Mobile Tutorials
  9. Mobile Games
  10. Mobile Wallpapers
  11. Secret Codes
  12. Ring Tones
  13. Web To SmS
  14. Telecom Reviews
  15. SMS Worldwide

  1. Islam
  2. Listen Radio Live
  3. Watch TV Channels
  4. Elections
  5. Home Decoration
  6. Beauty And Health
  7. Tech News
  8. Kitchen
  9. Greeting Cards
  10. Animation
  11. Messenger Zone
  12. Online Chat
  13. Articles
  15. City Codes
  16. Computer
  17. Know Your Heart
  18. Palmistry
  19. Myspace
  20. Make Money
  21. World News
  22. Map Guide
  23. Eid Day
  24. Pakistan
  25. Pakistani Singers
  26. Personalities
  27. Emergency No.s
  28. Funny Jokes
  29. Finance
  30. Flights
  31. Funny Pictures
  32. Kids
  33. Songs
  34. Sports Online
  35. Spotlight
  36. Student Visa
  37. Education
  38. Online Games
  39. Study Abroad
  40. Tutorials
  41. Immigration
  42. Internet
  43. Urdu
  44. Weather Status
  45. Webmaster Tools
  46. Valentine Day
  47. Video Clips
  48. Videos

Latest Updates!
Please fill out the form below to get notified whenever will be update.
Enter your email address:

Active Visitors
  1. 179

Article: Lou Pearlman

Louis J. Pearlman (b. 19 June 1954) is best known as a manager for boy bands like the Backstreet Boys, 'N Sync and US5. In recent years, allegations that he is a con man have arisen. Pearlman is originally from Flushing, Queens, New York, USA, most recently residing in Orlando, Florida. His whereabouts had been unknown from about December 2006 until June 14, 2007, when he was arrested in Indonesia. He was then turned over to US authorities and brought to Guam to begin facing charges that he defrauded investors of over three hundred million dollars.[1].

Pearlman is a first cousin to Art Garfunkel. Lou played guitar for a band in his hometown when he was in his teenage years. When success in the music industry proved elusive, he turned his attention to aviation. Allegedly Pearlman has had past associations with alleged penny-stock swindlers and earned his first big bucks as a beneficiary of one of the longest-running pump-and-dump schemes of the 1990s.

After he took his air charter company, Airship International, public in 1985, Pearlman became personally and professionally close to Jerome Rosen, a partner at small-cap trading outfit Norbay Securities. Based in Bayside, Queens, and frequently in trouble with regulators, Norbay actively traded Airship stock. This sent Airship's stock price consistently higher, enabling Pearlman to sell hundreds of thousands of shares and warrants at ever-higher prices. However, Airship was reporting little revenue, cash flow or net income. In return for keeping his penny stock liquid, Pearlman allegedly paid Rosen handsome commissions, according to a mutual friend, that reached into "the tens of thousands of dollars" per trade.[2]

It was Trans Continental Airlines (an aircraft leasing company that allegedly leased jets to only major world airlines and allegedly flew limited charter flights for high profile entertainers) that would eventually lead Lou Pearlman to his involvement in the music industry again. Trans Continental Airlines also appears to have been the vehicle for a major fraud.

On December 27, 2006, the State of Florida Office of Financial Regulation (OFR) - after a yearlong investigation - filed a complaint against Pearlman and his companies for a huge savings / investment program fraud, alleging Pearlman has been operating a record-length Ponzi Scheme, using falsified FDIC documents to gain his investors' confidence.[3]

Pearlman, through his facade enterprise, Trans Continental Airlines, promised investors an FDIC-secured savings program that offered a generous, but reasonable, 6-8 % return. This far-from-suspicious offering, backed by his celebrity status and regular distributions of new investor money to established clients, allowed Pearlman to continue swindling over 1800 investors, including friends and family, for over twenty years. Even earlier investigations by Florida authorities were put to rest by false paperwork and the smooth assurances of Pearlman and his attorneys.[4]

Consequently several banks and investors filed suit against Pearlman, for not paying his debts and for deception. Banks apparently loaned money to Pearlman based on falsified documentation from a Florida certified public accountancy Cohen & Siegel, that apparently also was a fabrication.

"At worst, TCA's financial statements are a fiction, purporting to have been prepared by a non-existent firm to deceive Integra," Integra Bank of Indiana wrote in a complaint. "At best, the financial statements were prepared by unlicensed accountants who either failed to properly audit TCA's financial statements, received misleading financial information from TCA, or both."

Pearlman's companies were taken over by a court appointed receiver, having receivership over the assets of Trans Continental Airlines, Inc., Trans Continental Airlines Travel Service, Inc., Trans Continental Enterprises, LLC., Louis J. Pearlman Enterprises, Trans Continental Records, Trans Continental Talent, Fashion Rock, Trans Continental Travel Service, Trans Country music Group, Trans Continental Studios, Trans Continental Aviation and Aegis Consulting.

Current figures indicate the amount involved may be close to US$500,000,000. If this figure proves accurate, Pearlman's Ponzi scheme would be the largest in history, exceeding that of Reed Slatkin.

No criminal charges have been filed yet.

Boys, boys, boys!
After years of occasionally chartering a jet through Trans Continental Airlines, according to Pearlman's biography on his former website, he received a charter request from the pop musical group, New Kids on the Block. After learning that these five young kids had made hundreds of millions of dollars in record, tour and merchandise sales, Louis Pearlman started Trans Continental Records. Allegedly the first band to sign to Trans Continental Records, the Backstreet Boys sold 65 million records worldwide, hitting gold and platinum in 45 different countries and repeating their success with the band 'N Sync, which sold over 56 million records globally.[5].

Also Pearlman's involvement in Chippendales dancers predated his boy-group success. "I got involved with Chippendales before Backstreet and it's Chippendales and New Kids on the Block that gave me the idea to pursue Backstreet."[6].

Other boy bands managed by Lou Pearlman are/were O-Town (created for the ABC/MTV reality TV series Making the Band), Lyte Funky Ones (LFO), Take 5, Natural and US5. Further artists on the Trans Continental's label include Aaron Carter, Jordan Knight, Sean van der Wilt, C Note, and Smilez & Southstar. Pearlman owned an entertainment complex in Orlando, including a recording studio (Trans Continental Studios).

Ongoing investigations show that previous and other Pearlman enterprises were prefinanced / kept up with funds he defrauded from investors and banks.

All musical acts who have worked with Pearlman have sued Pearlman in Federal Court for misrepresentation and fraud. All cases against Pearlman have either been won by those who have brought law suits against him, or have been quietly settled out of court.

The Backstreet Boys sued Pearlman because they felt their contract, under which Pearlman collected as both manager and producer, was unfair. Fellow boy band *NSYNC had similar issues with Pearlman... according to VH1's 100 Most Shocking Rock & Roll Moments, BMG claimed nearly all of the three hundred million dollars *NSYNC had made from record and merchandise sales, leaving seven million dollars for the members of the band. Frustrated, *NSYNC attempted to leave RCA and sign with competitor Jive Records, a migration which Pearlman hoped to prevent with legal action. Both BMG and Pearlman's lawsuit and the countersuit filed by *NSYNC were settled out of court.

Teenage pop star Aaron Carter (then 14) filed a lawsuit in 2002 that accused Pearlman and Trans Continental Records of cheating him out of hundreds of thousands of dollars and of racketeering for a deliberate pattern of criminal activity. The suit was later settled out of court.[7]

"They find talented kids, sign them, watch them get successful, don't pay them, wait for them to sue and then settle the cases," Yanger said. "It is not an isolated case."

Looking back at those days, 'NSYNC star Justin Timberlake said 24 September 2006 in an interview with the magazine Rolling Stone: "I was being monetarily raped by a Svengali".[8]

Lou's most published oneliner: "People keep asking me, when is it all over?" he said. "And my answer is, when God stops making little girls, it's over."[9]

Among Lou Pearlman’s latest activities were controversial massive talent scouting (from Options Talent up to Talent Rock),[10] and producing RTL reality TV show "Big in America" in Germany.[11] Boy band US5 appears to have been assembled on that show. It appears US5 management, Berlin-based company Triple M Music [1], may be the only running business that Pearlman is still actively involved in.

Talent scouting scandal
In September 2002 Louis Pearlman purchased the Internet oriented talent scouting company Options Talent, allegedly without being informed by Options Talent CEO Mark Tolner about the criminal pasts of some of that company's officials, Ayman Ahmed El-Difrawi (aka Alec Defrawy / Defrawi) and David Elliott.[12][13] Since then Options Talent went through several name changes, like Trans Continental Talent TCT, Wilhelmina Scouting Network WSN (now Web Style Network).

The New York State Consumer Protection Board did issue a consumer alert about WSN / TCT due to many consumer complaints.[14] In Florida about 2000 complaints were filed with the Attorney General and the Better Business Bureau. A lawsuit was in preparation by Assistant AG Jacqueline (Jackie) Dowd, as a result of a two years investigation. The case never made it to court. Few month's after Dowd's unexplained replacement by John MacGregor the inquiry was discontinued because in MacGregor's opinion the probe was unable to find "any substantial violations".[15][16]

After WSN's questionable bankruptcy,[17][18] Pearlman started Fashion Rock (now Talent Rock) in September 2003, at that time with Tolner (CEO), Defrawy and several other former WSN staff members still involved.[19][20][21]

In 2004 Pearlman started an aggressive campaign against some websites that contain criticism (facts and opinions) of his methods of conducting talent search. About a dozen identical sites have been erected by Pearlman "to attack critics".[22][23] June 2004 Fashion Rock, LLC filed a civil suit for defamation against a number of individuals and companies.[24][25] The cases against co-defendants Bill Rosenberger and Canadian anti-consumer-fraud expert Les Henderson have been dismissed, the suit against co-defendant Roberto Villasenor is still in process. So far no evidence has been presented by Fashion Rock. Defendants allege the suit is frivolous, only meant to harass and to hurt them financially.

Les Henderson has filed a libel suit against Pearlman and several others. The suit is in progress.[26] Henderson is the author of the book "Under Investigation" about the WSN affair and the questionable way the Florida governor ( attorney general at the time ) Charlie Crist's office handled it.[27][28][29]

Trans Continental Airlines savings program fraud investigation
This article may require cleanup to meet Wikipedia's quality standards.
Please discuss this issue on the talk page or replace this tag with a more specific message.
This article has been tagged since March 2007.

November 14, 2006, reported Frank Vazquez, vice president of operations for Trans-Continental Companies, took his own life. The article mentioned Florida state investigating a savings program offered by the company. [30] December 17 St. Petersburg Times wrote the program was offering "high yield at no risk", and was presented as a way to participate in a special deal for Trans Continental Airlines employees. Investors were notified by Trans Continental Airlines that it stopped processing withdrawals from its "Employee Investment Savings Account" and the company wrote in a form letter to "anticipate a resolution soon after the first of the year".[31] After getting sued by the state Office of Financial Regulation, the company agreed to halt all sales, while denying the charges.[32][33][34]

27 December 2006 the Florida Office of Financial Regulation filed the 'Complaint' (published February 5), alleging Pearlman has been operating a scheme resembling to a Ponzi, using falsified FDIC documents to lure investors. PDF


Consequently several banks and (groups of) private investors filed suits against Lou Pearlman for failing payments on loans and investments.[35][36][37][38][39][40]

In their suit (filed 12/28/2006) Integra bank also calls Pearlman a deadbeat Ponzi operator.

"While Pearlman's public persona is that of a man whose life seems lifted from a Horatio Alger story - a life filled with glamour, glitz and financial success beyond most peoples' dreams - Integra's recent dealings with Pearlman and his first company, TCA, would indicate that this outward mask conceals the fundamental economic instability more common to a Ponzi scheme."

January 22. The Orange County Sheriff's Office seized Pearlman's 1968 Gulfstream jet and turned it over to the First International Bank & Trust.[41]

"Two additional loans -- each for $10 million -- were to be used to build an entertainment complex and develop three television shows with MTV, among other endeavors."

January 27. Some people who worked for Pearlman have been laid off. Office equipment has been removed from Trans Continental headquarters in downtown Orlando.[42]

January 28, 2007 "Pearlman's money woes follow him downtown"[43]

February 1, 2007. Filed in the Circuit Court Orange County Florida: Case 48-2007-CA-001180-O BANK OF AMERICA NA, .vs. FASHION ROCK LLC, ET AL[44]

February 2, 2007: Florida regulators said Pearlman's Trans Continental Savings Program is a massive fraud and the state takes over the company. Most of the at least $95-million which was collected from investors, is gone. Orange County Circuit Judge Renee Roche ordered Pearlman and two of his associates, Robert Fischetti and Michael Crudelle, to bring back to the United States "any assets taken abroad which were derived from illegal transactions". "The court ordered receivership froze company assets as the state investigation continues."[45][46][47]

February 2. Claims have grown to more than $130 million, not including $33 million judges have recently ordered him to pay on previous lawsuits. But according to Pearlman's brilliant theory the claims of Florida state, the banks and the investors are nothing but lies.[48]

In a November interview with The Associated Press, Pearlman blamed the lawsuits on people trying to cash in on his success. "I know a lot of people come at me, as a deep-pockets theory," he said then. "The more successful you get the more lawsuits you get, unfortunately."

February 5. Text version of the 'Complaint' by the Florida Office of Financial Regulation (filed 27 December 2006) is published.[49]

February 6. More than $317 million in claims now.

Receiver Jerry McHale said that just on "my first pass-through" dealing with investors' communications and corporate records of Trans Continental Airlines, he identified $204.5 million in claims from investors who put money into the company's "Employee Investment Savings Accounts" and another $113 million into corporate stock.[50]

"Bank records indicate the investors' deposits of approximately $118 million have been utilized to pay earlier investors both dividends and cash withdrawals, as is the case in Ponzi schemes," A. Gregory Melchior, the agency's assistant general counsel in Tampa, wrote in the complaint filed Friday in state Circuit Court in Orlando.[51]

February 7. The investigators have taken over Pearlman's Trans Continental company website and are now using it to convey information to investors and media. Currently (2/7/07), a full copy of the court order is posted, as is contact information for the investigators. More information is to be posted over the coming weeks.

Press: $317M in investor claims could rival state record for Florida.[52]

February 9. State shuts down Fashion Rock (also known as Talent Rock).[53]

February 10. According to records filed by the Office of Financial Regulation, many of Pearlman's misrepresentations were first brought to the attention of authorities years ago.[54][55]

A federal investigator suspected as early as 1995 that Lou Pearlman's investor program might not be as secure as the mogul claimed -- and asked Florida officials to investigate. But despite that and other red flags raised in 1999, 2001 and 2004, government authorities did not seek to shut down the Orlando-based investment program until late last year.

February 11. Investors are left holding the bag for $317-million.[56][57]

February 12. A lot of the missing millions is New York money.[58]

February 15. The Federal authorities served warrant on Pearlman's companies, conducted by various agencies, the state of Florida, FBI, the IRS and the FDIC. Some of Pearlman's attorneys filed a court motion to withdraw from representing him.[59][60][61][62]

Pearlman's property manager has stayed on to continue paying utility bills and such, but told Eyewitness News he has not been paid for three months. He also said that Pearlman's company intercepted the most recent rent payments from the tenants there and disappeared with that money.

February 15. Bob Whitby told you so.[63]

Old news, amigos. We told you three years ago that Pearlman was a corpulent pusbag who would rip off anybody and anything within reach of his scaly appendages. But did you listen? No, you did not.

February 16. Boy-band guru hasn't been seen, his home is for sale and now he faces a criminal probe.[64]

Due to AP and Reuters catching up, the story is now in print worldwide.[65]

Action site. A victimized couple recently erected website[66] The site offers sample letters to mail to elected officials in hopes of raising awareness and obtaining help. It also feature a forum, links, and updated news.

February 21. But When Will They Do Something About That Music?[67]

February 21. Lou Pearlman resigns from Trans Continental Airlines. [68]

Troubled Orlando entrepreneur Lou Pearlman has resigned from his equally-troubled company Trans Continental Airlines, according to a document filed in U.S. District Court in Orlando. In the court record, which appeared this week in a suit filed by Integra Bank of Indiana, one of Pearlman's attorneys declared that he "is not an officer or director any longer, of Trans Continental Airlines and could not answer on behalf of Trans Continental Airlines."

February 21. FF Station LLC, Lou Pearlman's company that owns the Church Street Station, filed for Chapter 11 bankruptcy protection.[69]

Green said the intention of the bankruptcy action is to get FF Station sold off to a new developer as quickly as possible so that the complex and its tenants may get back to normal business as soon as possible.

February 22. Pearlman and his executives have left, and numerous businesses that were headquartered at his Trans Continental Enterprises downtown have largely been turned over to court-appointed authorities.[70]

Also Tuesday, Pearlman lost some of his stake in his two big boy bands, 'N Sync and Backstreet Boys. Washington Mutual Bank was awarded a $9.8 million interest in Pearlman's ownership of 'N Sync Productions Inc. and Backstreet Productions Inc. in a judgment entered in Seminole County.

February 28. 10 more of Lou Pearlman's companies were put under the control of a court-appointed administrator to protect any remaining assets. The receivership now includes Trans Continental Airlines, Trans Continental Airlines Travel Service and Trans Continental Enterprises, Louis J. Pearlman Enterprises, Trans Continental Records, Trans Continental Talent, Fashion Rock, Trans Continental Travel Service, Trans Country music Group, Trans Continental Studios, Trans Continental Aviation and Aegis Consulting.[71]

March 1, 2007: Four major creditors seek the appointment of a Chapter 11 Trustee for Louis J. Pearlman and Trans Continental Airlines, Inc. by filing involuntary bankruptcies.

March 1. German youth-magazine BRAVO covers Louis Pearlman. See for a translation[72]

March 6. Businessweek compilation. Louis Pearlman seemed to have it all...[73]

March 6. A lawsuit faults Florida governor Charlie Crist. He delayed or interfered with investigations as attorney general, the suit says.[74]

March 9. The lawsuit naming Crist triggered the attention of German national news outlets, a.o. Bild and Der Spiegel.[75][76]

March 11. An "insider" said in German paper EXPRESS, Pearlman is working with the investigators to recoup the money. Allegedly a large part of the disappeared money was found. Pearlman claims his ex-businesspartner, who took care of the investment trusts, has disappeared, so the source said.[77]

March 12. Another major press agency, UPI, spreading the news.[78]

March 13. Associated Press story: More than a dozen North Dakota banks may lose more than $20 million in soured loans. At least two banks already have filed lawsuits.[79]

March 27, 2007: Soneet R. Kapila is appointed Chapter 11 Trustee of the bankruptcy estates of Louis J. Pearlman and Trans Continental Airlines, Inc. in the United States Bankruptcy Court, Middle District of Florida, Orlando Division by Felicia S. Turner, United States Trustee, Region 21. The Bankruptcy Court signed the order on March 30, 2007. [80]

ABC News 16 April 2007[81]

Fox News 17 April 2007[82]

They are auctioning off some of the assets of Pearlmans. You can view the auction here:

Pearlman was arrested in Indonesia June 14, 2007.[83]


<<< Back

Send this page to a friend

Most Viewed Services:
  1. New Year
  2. Free TV
  3. Watch GEO News
  4. Watch Disney TV USA
  5. AIM Away Messages
  6. AIM Buddy Icons
  7. BBQ Recipes
  8. Burger Recipes
  9. Fruit Salad Recipes
  10. Funny Pictures
  11. Spider-Man
  12. Spider-Man The Film
  13. Spider-Man Wallpapers
  14. Family
  15. Family Fun
  16. Windows Live Messenger
  17. Easter E-Cards
  18. 2008 Festivals
  19. Christian Festivals
  20. Msn Display Pictures
  21. Yahoo Avatars
  22. Myspace
  23. Nokia 5700
  24. Nokia 5070
  25. Bob Woolmer
  26. SMS Messages
  27. SMS Jokes
  28. Animals
  29. Apple
  30. Bikes
  31. Zong
  32. World
  33. Cars
  34. Celebrity
  35. Facebook
  36. Ali Lohan
  37. Computer
  38. Finance
  39. Fitness
  40. Shoes
  41. New Homes
  42. MSN Web Messenger
  43. Download MSN Messenger
  44. Download Latest Msn Messenger
  45. Multi MSN
  46. Download Multi MSN
  47. MSN Emoticon
  48. MSN Nick Name
  49. MSN Screen Names
  50. MSN Nick
  51. MSN Names
  52. Cool MSN Emoticon
  53. Urdu
  54. Urdu Jokes
  55. Urdu Dictionary
  56. Urdu Poetry
  57. Automobile
  58. Cars
  59. New Cars
  60. Food
  61. Kitchen
  62. Cell Phone
  63. Free Mobile Game
  64. Free Mobile Wallpapers
  65. Mobile Phone Secret Code
  66. Free Web SMS
  67. Free Worldwide Sms
  68. Islam Way
  69. Home Interior Decoration
  70. Health And Beauty Tip
  71. Latest Tech News
  72. Kitchen Remodeling
  73. Free E Greeting Card
  74. Know Heart
  75. Palmistry Line
  76. Make Money Online
  77. Myspace HTML Codes
  78. Myspace Toolbox
  79. Toyota RAV4
  80. Nokia Cell Phone
  81. Sony Ericsson Cell Phone
  1. Chinese New year Celebration
  2. Blackberry Phone
  3. Funny Joke
  4. MSN Avatars
  5. MSN Smileys
  6. MSN Display Pics
  7. MSN Display Pictures
  8. Pakistan Cricket Team
  9. Spicy Food
  10. Health Food
  11. Pakistan
  12. AOL Block Checker
  13. Urdu News
  14. Yahoo Web Messenger
  15. Download Yahoo Messenger
  16. Download Latest Messenger Version Yahoo
  17. Multi Yahoo Messenger
  18. Download Multi Yahoo Messenger
  19. Yahoo Emoticon
  20. Yahoo Hidden Emoticon
  21. Yahoo Avatars
  22. Yahoo Display Pictures
  23. Yahoo Animated Avatars
  24. Yahoo Smileys
  25. Free Cooking Recipe
  26. Hindu Festivals
  27. Sikh Festivals
  28. March Madness
  29. Tutorials
  30. Article of Mobile Phone
  31. Abrar Ul Haq
  32. Zong Sms
  33. Internet
  34. Better Homes
  35. Home
  36. Pets
  37. Forex
  38. Real Estate
  39. Science
  40. Stock Exchange
  41. WWE
  42. Information
  43. Football
  44. Flights
  45. Cricket News
  46. Latest World News
  47. Personality
  48. Emergency Phone Numbers
  49. Family Kid
  50. Online Spotlight
  51. Student Visa
  52. Download Online Game
  53. Study Abroad
  54. Immigration Law
  55. College University
  56. Web Master Tool
  57. Weather Report
  58. Funny Video Clips
  59. Funny SMS Joke
  60. Urdu SMS
  61. New Year SMS Joke
  62. Free SMS Joke
  63. AIM Block Checker
  64. City Code
  65. Find Article
  66. Dual Sim T500
  67. Asus P535
  68. Asus Cell Phone
  69. Sky Scrappers
  70. Funny Jokes
  71. History of Pakistan
  72. Government of Pakistan
  73. Lahore Resolution
  74. English Chat
  75. Online Chat Rooms
  76. Computer Wallpaper
  77. Software Downloads
  78. Samsung i710
  79. Ali Zafar
  80. Atif Aslam

More Resources...

© All Rights Reserved : Pakistan : Privacy Policy : Disclaimer : Advertise with us : Sitemaps : 1, 2, 3, 4, 5