Real Music People

After we haven’t heard anything of the former manager of Backstreet boys and N’SYNC recently news for his arrest in Indonesia spread.
Authorities have been seeking Pearlman in the midst of an investigation into allegations that he was behind a bogus investment scheme that defrauded investors out of hundreds of millions of dollars and banks out of an additional $150 million. According to the Orlando Sentinel, authorities in Indonesia expelled Pearlman and then turned him over to U.S. authorities.
A speaker of the U.S. attorney office in Tampa told reporters: ”We are aware that he is in the custody of the FBI, I can’t comment beyond that”.
The arrest occurred just days after thousands of items from Pearlman’s Trans Continental empire were auctioned in Florida to help raise money to pay back some of the allegedly defrauded investors. And only $200 000 from the sale of boy bands memorabilia he had managed- N’SYNC and Backstreet Boys and office furniture and plane parts was rung up in the auction.
Lou reportedly left the country in January to accompany his new boy band US5 on their tour to Europe just as his once-massive empire was falling apart amid the bank-fraud allegations. It turns out that he had done this to escape from police and problems. While he was out of the U.S., involuntary bankruptcy proceedings against him and his dozens of companies went forward, as did a federal criminal probe and a number of lawsuits from more than 1,000 investors who were allegedly cheated.

This entry was posted on Monday, June 18th, 2007 at 11:29 pm .You can follow any responses to this entry through the RSS 2.0 feed.