Lou Pearlman - Fame Fraud, Scammer

FAME, FORTUNE, PERSONAL WEALTH AND A FRAUD
THE TALE OF

LOU PEARLMAN –


ENTREPRENEUR, MUSIC MOGUL, BUSINESSMAN and the LEADER OF ONE OF THE LARGEST PONZI-SCHEMES WHICH COST AMERICANS MORE THAN
$317 MILLION FROM INVESTORS

What’s a PONZI-SCHEME? The quick definition is the promising a return on investment for your investment into a project, company, stock or product. Tasking the money from one then paying some interest debt with that money to another investor makes the scheme look profitable, a good investment and a success for the future.

This was the operation of Lou Pearlman, Orlando’s Florida’s celebrity maker, managing such boy bands as, ”Beastie Boys”, Britney Spears and INSYNX. The fortunes Lou made from the music industry were not enough to sustain his lifestyle. With investment plans of resurrecting Church Street area of Orlando, Florida and the creation of his own airline, Trans Airlines during the 1990’s Pearlman and his associates scammed millions from small investors as well as millions from Bank of America and other Banks. The scheme was falling apart and unraveling after Banks began to foreclose on property and business loans.

Pearlman was going bust. He couldn’t keep up with the payments, as with most PONZI schemes those that get some payments receive them from new investors in the program, not the promised interest rates.
As the Fed’s closed in, so did the Banks and forcing Pearlman into Bankruptcy. The hundreds of millions owed to the Banks and the hundreds of thousands if not millions owed to the individuals would never be recovered.

Pearlman went on the run and arrest warrants were issued. After several years on the run, he was located in Guam, living under an assumed name. His fame, fortunes and Rock and Roll legacy went up in smoke.

Pearlman was apprehended and brought back to the United States for prosecution in the Northern District of the U.S. Federal Court in Orlando, Florida. He is currently awaiting trail. The banks, bankruptcy trustee’s ans courts are still looking for the missing assets. His personal Orlando property, homes, yachts, cars and businesses have been put up for auction. Recovery is minimal compared to the amount of money he fraudulently obtained. Those small time investors, the moms and pops who were planning retirements from his promises, his trust and commitments will never be seen. They lost their investments, some in the thousands others in the millions. While the matter is in the Bankruptcy courts, between the Banks and the IRS, the small investor may not stand a chance of recovery. If any maybe pennies on the dollar.

We will keep you informed.

IOS - COURT RECORD UPDATE 9/26/07

IOS
COURT PROCEEDINGS UPDATE


www.CrimeTalkAmerica.com has been receiving numerous inquiries about the current status of the IOS court action.
Our research finds that a question of VENUE authority has been raised by Thomas Balsiger et al, with regard to the jurisdiction of the Wisconsin U.S. Attorney’s Office. Arguments in writing on both sides of the issue have been presented to Judge Patricia J. Gorence. A review of the issues is being considered.

Judge Gorence set the following schedule;

Jan. 15, 2008 – to submit defendants privileged logs and
governments position
Feb. 15, 2008 – defendants responses
Feb. 29, 2008 – government’s reply
April 15, 2008 – court sets scheduling conference

For those who are familiar with the International Outsourcing Service matter, IOS has been removed as a defendant in this matter and as a corporation is cooperating with the government. The parties, or individual’s, former executives, and contractors or employees are remaining defendants.

www.Crimetalkamerica.com will strive to keep you informed of any additional data that we deem important and necessary.

Please continue to ask questions or make comments to be posted on our blog.

TOP 100 CORPORATE CRIMINALS

CRIMETALKAMERICA’S

RESEARCH

100 TOP CORPORATE CRIMINALS

1990’s


Research finds that the publication by Mokhiber & Weissman titled “Corporate Predators” identify's corporate offenders and penalties. Their research finds that federal authorities are criminally prosecuting corporations for a variety of criminal acts. From smuggling, to environmental crimes, consumer fraud to misrepresentation to employees, corporate criminals are within the companies which American's and world consumers rely on.

Attached is a listing of the top 100 Corporations that have been convicted of various crimes throughout the 1990’s. This list shatters the spirit of American business integrity. While it does not represent all American corporations, it defines the top listed corporations of the 1990’s that were convicted or pled guilty in criminal actions against the American government, consumers, workers and the environment. Visit the Top 100 Annotated List.

Go to:

www.corporatepredators.org/

Tell us what you think!!!

REMEMBER 9/11 VICTIMS

911 MEMORIAL PAGE

ALWAYS REMEMBER


As 9/11/2007 is just days away, its hard to believe that it’s been 6 years since America was attacked by radical thugs. We tend to give Bin Laden and associates more credit than they deserve. Looking at the total picture, its hard to comprehend that these lunatics had the ability to turn the world upside down without State sponsored funding.

As I reported to the U.S. Senate, House Judiciary Committee 1998 hearings on “Terrorism and Technology”, the circumstances of the first 1993 bombing involved funding from a variety of sources, including Consumer Coupon Redemption. Coupon redemption processing is one of the favorite money sources for organized radical Middle Eastern businessmen operating throughout the United States. From New York to Florida, Texas to Wisconsin, Ohio, Chicago and other cities around America, the organized coupon redemption fraud helped finance a portion of the 1993 WTC bombers and bombing. This does not suggest that all Middle Eastern grocery stores are participants in radical anit-American efforts.

It became obvious that we had an organized Middle Eastern criminal network operating throughout the United States. Little was done by law enforcement, prosecutors or even the corporations affected, until after my 1998 testimony. (View my testimony on this website). Since 9/11/2001 law enforcement became serious about coupon fraud’s role in financing terrorism. Only after Sen. Orin Hatch reported such sub-committee information to the FBI. Since his forwarding of my testimony to the federal law enforcement agencies did numerous networks become targets, were broken, many arrested, prosecuted, and a successful and tremendous disruption to terror funding activities within the United States has been slowed.

It’s been suspect that more than $100 million annually has been diverted from consumer coupon redemption to Middle East terror cells operating within the borders of the United States. Many of these cells have been operating since the late 1980’s. Many have been successfully prosecuted; others have disappeared, while the networks have broken into small units, still using consumer coupons to finance activity. NCH (Nielsen Clearing House, now known as New World,) first identified suspect terror activities of coupon fraud redemption in the mid-1980’s.

The problem at the time and through the 1990’s is that Nielsen and Manufacturer’s were operating in a reactive forum, rather than pro-active preventive mode. That is, chasing suspected redemption fraud with private investigators, and coordination with the Coupon Information Center, a Washington, D.C. a non-for-profit lobbying group. The only resource of law enforcement participation was after Nielsen put together a criminal case for presentation to the Postal Inspectors. This was often in reaction to excessive coupon redemption. In many instances, Nielsen found that the organized groups had affiliation with Middle Eastern business groups and some had direct interaction to finance terror operations.

The indictment of International Outsourcing Services (IOS) in 2007 raised the flag on the inner workings of the consumer coupon redemption business. While the U.S. Attorney of Wisconsin has released IOS of criminal liability, 11 individuals, corporate executives, and contractors remain under indictment and accused of various criminal fraud activities. This does not suggest that any of the individuals or IOS is supporters of Middle Eastern terror operations, but it does explain the method of coupon redemption and the loose controls that victimized numerous Americans and American manufacturers.

IOS replaced Seven Oaks Redemption Operations of El Paso Texas as the primary coupon redemption corporation. The movement of corporate ownership, buy and sell of business’ and moving some of the processing business from the United States into Mexico has cost numerous American’s jobs.

Had the U.S. Attorney not penetrated a New Jersey coupon fraud redemption operation, that were Middle Eastern businessmen operating within the United States, then IOS would have been continuing is alleged suspect illegal consumer coupon operation. Other than the documentation of the transactions, excessive redemption, money laundering, and coupon fraud, it often takes the cooperation of informants, direct penetration into the criminal enterprise by undercover operatives, only then, will the industry meet the standard to obtain a criminal indictment.

Victimized in these schemes are such companies as Kellogg’s, Proctor & Gamble, Post Cereals, Pepsi and other worldwide corporations. Consumer Coupons is a family staple, a cost savings and promotion of corporate grocery and pharmaceutical products. It’s a multi-billion dollar industry. The processing of coupons for redemption reaches across the borders of Mexico and Canada. Redemption and the processing of coupons by organized criminal groups, including those affiliated with Middle Eastern terror cells, has had a dramatic impact on the coupon industry. It’s estimated by insiders that loss due to coupon fraud exceeds $500 million annually.

Reducing the problem is more than policing, but rather a corporate commitment to improve customer audits. Redemption processors should consider the following;
*Identification of corporate and business owners registered to
submit consumer coupons for redemption,
*Corporate or business license confirmation,
*FEI number,
*Civil and Criminal background verification, and
*Visit to the registered store to confirm the actual location, the
size of the store, the volume of the store purchases and
*Video/photo of the front (outside) and the inside of the store
operation.

Following some of these procedures should greatly reduce fraud to the consumer coupon industry. In addition, annual updates of store information, registration and visits will confirm that the store has not changed ownership or even whether it closed, moved or is still operating. Surprise visits (off schedule) will also enhance and keep consumer coupons from organized fraud.

Addressing these principles will be a great tribute to the 9/11 victims.

Remember our military service men and woman who have sacrificed to defend our country from terrorists and States of Terror.

REMEMBER ALL THE VICTIMS OF 9/11

INTERNATIONAL OUTSOURCING UPDATE

INTERNATIONAL OUTSOURCING SERVICES

THE SAGA CONTINUES



As we had reported on June 18, 2007 the El Paso Times reports on August 4, 2007 that “Federal authorities are investigating several law offices” in the IOS fraud investigation. To be specific, the U.S. Attorney’s Office in Wisconsin is looking into the information and behavior of specific defense attorney law firms and attorneys as to the defense methods and information which they provided to the FBI and the U.S. Attorney’s office during the initial IOS investigation.

The U.S. Attorney’s office is looking into whether attorney’s obstructed justice by giving false information to officials, that some attorney’s were used to harass one or more government witnesses and that some witnesses were coached before they were interviewed by federal investigators.

Officials of the law firms named said they were not aware of the allegations being made by the federal prosecutors.

The IOS and defendants (11) named alleged conspirators, officers and consultants for IOS are pending. IOS was released from criminal liability in exchange for its cooperation with the U.S. Attorney’s Office of the Eastern District of Wisconsin and the FBI.

An affidavit by the U.S. Attorney’s office filed in August, claims to have excess of 10 tons of evidence mostly coupons. A hearing is scheduled for September 2007 to allow lawyers to meet with the judge as to when they will be ready to go to trial, according to court filings.

In the meantime, the saga continues, the Furr’s, shareholders of IOS and alleged accused in the indictment, are negotiating a sale to portions of IOS in France and the defendants wait for their day in court.

WHAT DO YOU THINK?


LET US KNOW!