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.
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.
Labels: Fraud, Pearlman. Ponzi Scheme, Ronk and Roll
