Lou Pearlman

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Louis J. Pearlman

Background information
Birth name Louis Jay Pearlman
Also known as Big Poppa[1]
Incognito Johnson.[2]
Born June 19, 1954 (1954-06-19) (age 53)
Flushing, Queens, NY, U.S.
Genre(s) Dance-pop
Boy band
Occupation(s) Producer
Manager
Years active 1993-2006
Label(s) Trans Continental
Associated acts Backstreet Boys
'N Sync,
O-Town
LFO
Take 5
Natural
US5,
Jordan Knight
Aaron Carter
Smilez and Southstar
C-Note

Louis Jay Pearlman (born June 19, 1954) was known in the 1990s entertainment business for being the manager of famous boy bands the Backstreet Boys and 'N Sync (both of which later sued him, but settled) and later for being the owner of controversial talent scouting companies Wilhelmina Scouting Network aka Trans Continental Talent (fraud investigations were dropped after bankruptcy) and Fashion Rock/Talent Rock (sold by State receiver).

In 2006 it came to light that Pearlman had perpetrated one of the biggest and longest running Ponzi schemes in American history, leaving close to half a billion dollars in debts. For more than 20 years Pearlman enticed individuals and banks to invest in Transcontinental Airlines Travel Services Inc. and Transcontinental Airlines Inc., which existed only on paper. Pearlman used falsified FDIC documents and fake financial statements created by fictitious accounting firm Cohen and Siegel to win investors' confidence.[3][4]

On May 21, 2008, Pearlman was sentenced to 25 years in federal prison, after pleading guilty to charges of conspiracy, money laundering, and making false statements during a bankruptcy proceeding. U.S. District Judge G. Kendall Sharp gave Pearlman the chance to cut his prison time, by offering to reduce the sentence by one month for every million dollars he helps a bankruptcy trustee recover. He also ordered individual investors are to be paid before institutions in distributing eventual assets.[5][6][7][8]

Contents

[edit] Early life

Pearlman was born and raised in New York City before moving to Orlando, Florida. He is an only child, born to Reenie and Hy Pearlman, who ran a dry cleaning business.

[edit] Career history

Pearlman idolized his first cousin Art Garfunkel. As a teenager, he managed a band, but when success in music proved elusive, he turned his attention to aviation. By the late 1970s, Pearlman had forged a partnership with German blimp tycoon Theodor Wüllenkemper. Early 1980s he started a helicopter commuter service. Next came a blimp advertising company, which suffered several controversies including the crash of a Jordache blimp and claims of insurance fraud.[9][10]

After moving to Orlando, Pearlman claimed to operate a travel agency called Trans Continental Travel Services, an aircraft leasing business and a charter airline, 'Trans Continental Airlines', though both practically existed in name only. Pearlman was to some the best salesman ever known. "He told us he had 412 airplanes, the company had a value of $1.8-billion and the IPO was coming out at $17.50 a share. It was totally convincing."[11][12][13]

As his aviation businesses failed, Pearlman found other ways to make money. In the middle 1980s, he started the fraudulent Trans Continental Airlines savings program. Pearlman also had associations with penny-stock swindlers, and it has been reported that his first large con was taking part in one of the longest-running pump-and-dump schemes of the 1980s-90s.[14]

As a side product Pearlman became involved with the Chippendales dancers. That, combined with New Kids on the Block, inspired his boy band ideas. "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.".[15]

After receiving a charter request from New Kids on the Block, Pearlman became fascinated with the fact that the band had made hundreds of millions of dollars in record, tour and merchandise sales. Thus he started Trans Continental Records. After a massive search (costing $3 million),[16] Pearlman found the Backstreet Boys, who were signed to his label as its first act. Management duties were assigned to a former New Kids on the Block manager, Johnny Wright and his wife Donna. The Wrights are credited for actually making Pearlman's first two boy bands famous. "Pearlman provided the cash, and Wright did the rest."[17] The Backstreet Boys went on to sell 100 million records worldwide[18][19] , hitting gold and platinum in 45 different countries. Pearlman repeated this apparent success with the band *NSync, which sold over 56 million records globally. After the Wrights were dumped (and never paid adequately) Pearlman was unable to repeat the success of the first two bands.

With two major successes under his belt, Pearlman became a boy band mogul. Other boy bands managed by Pearlman were O-Town (created during the ABC/MTV reality TV series Making the Band), LFO, Take 5, and Natural. Other artists on the Trans Continental label included Aaron Carter, Jordan Knight, Smilez & Southstar and C-Note. Pearlman owned an entertainment complex in Orlando, including a recording studio he called Trans Continental Studios, a dance studio by Disney World named "O-Town," and Church Street Station, which, under his ownership, became a virtual ghost town.

Lou's final musical project was the RTL reality TV show "Big in America" in Germany.[20] Boy band US5 was assembled on the show. They were represented as being 'Big in America' despite the fact of only releasing one single in the United States, which did not chart well. It appears that US5's management, Berlin-based company Triple M Music,[21] is the only running business that Pearlman was actively involved in in December 2006 when his Ponzi scheme became known. Before his arrest, his last sighting was at an award show where the band received an award. US5 appear to still be under contract with Lou, though their final fate is unknown. Currently it has been arranged that they are allowed to tour while money is put in escrow until the case is settled.[22]

[edit] Criminal activity

On November 14, 2006, WFTV.com reported that Frank Vazquez, Vice President of Operations for the Trans Continental Companies, had taken his own life. The article mentioned Florida state investigating a savings program offered by the company.[23]

On December 17, 2006, the St. Petersburg Times wrote the savings 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."[24] After getting sued by the Florida Office of Financial Regulation (OFR) [1], the company agreed to halt all sales, while denying the charges.[25][26][27] The Florida OFR then filed a Complaint, alleging Pearlman had been operating a Ponzi scheme, using falsified FDIC documents to lure investors.[28] Consequently several banks and groups of private investors filed suits against Lou Pearlman for failing payments on loans and investments.[29][30][31][32][33][34] In their suit filed on December 28, 2006 Integra bank called 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."

On January 22, 2007, the Orange County Sheriff's Office seized Pearlman's 1968 Gulfstream jet and turned it over to the First International Bank & Trust.[35] "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." On January 27, 2007 some Trans Continental employees were laid off and office equipment was seen being removed from Trans Continental headquarters in Downtown Orlando.[36][37]

In February of 2007, Florida regulators announced that Pearlman's Trans Continental Savings Program was indeed a massive fraud and the state took possession of the company. Most of the at least $95 million which was collected from investors, was 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 continued. Pearlman was reported to be in Germany or Israel.[38][39][40]

Soon after, claims have grew to more than $130 million, not including the previous $33 million judges had recently ordered him to pay on previous lawsuits. But according to Pearlman's letter to the Orlando Sentinel the claims of Florida state, the banks and the investors were nothing but lies.[41] "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."

By February 6, 2007, there were more than $317 million in claims at that point.[42] That figure later grew to $500 million[43] Due to Pearlman's dealings, several banks, as well as individual investors, may be out millions of dollars. North Dakota banks may lose more than $20 million in soured loans. At least two banks have already filed lawsuits.[44]

The investigators then took control of Pearlman's Trans Continental company website and began using it to convey information to investors and media. The amount of missing money was reported to be one of the largest in Florida, if not the United States, for a Ponzi Scheme.[45] It was soon revealed, according to records filed by the Office of Financial Regulation, that many of Pearlman's misrepresentations had first been brought to the attention of authorities almost a decade before.[46][47] 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. The local alt weekly Orlando Weekly was not pleased, having blown the whistle on Pearlman several times in the past years.[48] "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."

On February 15, 2007, the Federal authorities served a 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.[49][50][51][52] "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." In February, Pearlman's home was put up for sale[53] Shortly after, Pearlman officially resigned from Trans Continental Airlines.[54] FF Station LLC, Lou Pearlman's company that owned Church Street Station, filed for Chapter 11 bankruptcy protection.[55] Ten more of his former companies were put under the control of a court-appointed administrator to protect any remaining assets. The receivership now included 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.[56] Two auctions selling Lou's assets were later held in July and August of 2007. The small profits (both about $300,000) were used to begin paying back investors.[57]

On March 27, 2007, Soneet R. Kapila was 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.[58]

Pearlman was arrested in Indonesia on June 14, 2007 after being spotted by a German tourist couple.[59] Pearlman was then indicted by a federal grand jury on June 27, 2007.[60] Specifically Pearlman is charged with three counts of bank fraud, one count of mail fraud and one count of wire fraud. On July 11, 2007 at a bond hearing, the Judge set a September 4, 2007 trial date in Federal Court for Pearlman on the bank fraud charges.[61] Pearlman requested, and was granted, a delay in the start of his trial. Pearlman's trial is now scheduled to begin on March 3, 2008.[62] Other criminal indictments are expected to follow. A civil lawsuit currently in progress also faults Governor Charlie Crist. The suit alleges that he delayed or interfered with investigations as attorney general at the time.[63]

Radar magazine obtained a brief exclusive interview with Pearlman which was published in their October 2007 issue. According to the interview, Pearlman sees himself as unfairly represented in the media, but unable to legally talk; he discusses past achievements, new acts, and claims he is still getting a profit off the Backstreet Boys.[64] "I'm planning on this chapter ending soon....This is just one of those hurdles in life that you have to get past....I mean the Backstreet Boys are about to get going again. They had a band member quit, but they're about to stage a comeback...we are still entitled to a share of the revenue." Through friends, Pearlman has denied all allegations and claims to have been set up. He has promised to find the real culprits as soon as he can get out of jail on bond.[65]

A superseding information was filed on March 3, 2008 in anticipation of a guilty plea. On Thursday, March 6, 2008, Pearlman changed his plea to guilty.[66]

[edit] Additional charges

Lou Perlman is an Executive Producer of four Tag Entertainment movies entitled Motocross Kids , Supercross: The Movie / Supercross, Red Riding Hood and Popstar . None or almost none of the investors in these movies have ever been paid, and there seems to be almost no legitimate financial records. Tag Entertainment originator Steve Austin has been arrested, is prosecuted, and pleads Guilty for "Various Acts of Fraud" regarding a criminal case brought by the United States Department of Justice. The case widened with an FBI investigation that has been ongoing for years. Additional defendants including Lou Perlman may be prosecuted by the D.O.J. with regard to Fraud charges due to his activities as Executive Producer. There are actions waiting by various States and hundreds of investor lawsuits filed, many naming Lou Perlman as a defendant.

[edit] Other controversies

[edit] Talent scouting scandal

In September 2002 Pearlman purchased the Internet oriented talent scouting company Options Talent which would go through several names including Trans Continental Talent, TCT, Wilhelmina Scouting Network, WSN, and finally the Web Style Network before disbanding. Pearlman then started another similar scheme this time with the names Fashion Rock, and Talent Rock. Options Talent had been started as eModel (later Studio 58 and other names) by Ayman Ahmed El-Difrawi who had a criminal record, spent nearly four years in prison for fraud, and is banned from doing business in Illinois.[67][68][69][70][71] Additionally, court documents show that prosecutors found El-Difrawi (variously known as Alec, Alex, Michael - Defrawy or Difrawi) had used multiple aliases to further his fraudulent activities including Michael Chandler, Michael Jensen and David Mellon.[72][68]

Originally Pearlman downplayed El-Difrawi's part in the business stating that he was "just the computer guy." Later, when Pearlman tried to distance himself from the criminals in the organization, he admitted that El-Difrawi was a principal in the organization that, "he set the whole thing up; he was the one that really developed the business."[73] The former director of the company's Atlanta office said, "It's Alec, He runs the whole thing."[74]

The SEC noted that Trans Continental had issued shares and paid monies to trusts which, in turn, owned consulting companies that employed El-Difrawi, Ralph Edward Bell, Cortes Randell, and Jason Hoffman. These consulting arrangements kept names off paperwork, nonetheless the SEC forced Trans Continental to disclose the felony records of El-Difrawi and Randell, and that the FTC had sought permanent injunction against Bell and Hoffman for using deceptive practices in a modeling business.[75]

Regardless of the name, all incarnations of the Talent Scouting networks were nothing more than a website which young hopefuls paid money (usually around $2000) to have their pictures and some information posted on the site in promises that 'A&R' would scout the site and the young talent may be discovered. Models, Musicians, Dancers, and Singers were all 'promised' a chance to sign up. No such promotion of the talent seemed to occur and no talent appears to have been 'discovered' via the costly site.[76] Agencies Ford and Elite asked to have their names removed from the company's web site and said they have never used models from the company.[77] Other agencies had problems with the modeling company's use of their name in reference and Bill Ford of Ford Models said, "They say they work with us. We do not work with them. They're not reputable people."[78]

As early as 2001, local and national media in many of the major cities where the talent agency set up shop independently declared the company a scam that took people's money and didn't live up to promises. Many news outlets did hidden camera investigations. The allegations in the media, begun before Pearlman bought the company, continued throughout his ownership.[79][80][81][82][83]

In September of 2002, Pearlman purchased a major share of Orlando's 'Karma magazine' which he then renamed 'Industry Magazine' and turned the publication into a franchised celebrity magazine while using it as an in-house promotional piece for Transcontinental Talent.[84] Industry was founded by TCT's Ayman Ahmed El-Difrawy (aka Alec Defrawy, Dufrawy), ralph Edward Bell, and Armand Kulpa (Trans Continental Talent's VP of Sales and Marketing).[85][86][87] Notably, Ralph Edward Bell (Along with TCT's Jason Hoffman) had already been in trouble with the FTC regarding another modeling agency scandal.[88] (The other websites that are hosted on the same server as industrymagazine.com and the used attorney in the trademark case (Alex Finch), show Defrawy's current involvement with 'Toospoiled', 'Good Grades Now' and 'Ask America', owned by Internet Solutions Corp.[89][90])

The New York State Consumer Protection Board did issue a consumer alert about the then named WSN/TCT due to many consumer complaints.[91] The CBP issued a statement in 2003 that this was the largest example they had found of a photo mill scam. In the same statement, State Senator Charles Fuschillo Jr. said, "By targeting the young, hopeful and innocent of our state, these 'agencies' try to make a quick, dishonest dollar and that is unacceptable..."[92]

In 2003, the San Francisco labor Commissioner declared that the company was acting as a talent agency and that it's practice of collecting money up-front was a violation of California law. The San Francisco District Attorney's office along with agencies in Florida, Hawaii, and Massachusetts were reported to be investigating.[93]

Also in 2003, a walkout of key firm members El-Difrawi and Ralph Edward Bell led to the theft of some credit card numbers of the company's customers. Although it is unclear who took the numbers, charges started appearing which were traced to Eyemodel, a new modeling company started by Bell and El-Difrawi.[94]

In Florida about 2,000 complaints were filed with the then Attorney General Charlie Crist and the Better Business Bureau. A lawsuit was in preparation by Assistant AG Jacqueline (Jackie) Dowd, as a result of a two year investigation. The case never made it to court. A few months after Dowd's unexplained replacement by John MacGregor, the inquiry was discontinued because in MacGregor's opinion the probe was unable to find quote, "any substantial violations," and the company was bankrupt - leaving no deep pockets to collect damages from."[95][96]

In 2004, Pearlman started an aggressive campaign against some websites that contained criticism (both facts and opinions) of his companies methods of talent scouting. To "attack critics" more than a dozen sites were erected by then Fashion Rock CEO Mark Tolner[97] and by Fashion Rock business model creator Alec Defrawy ("The Bureau of Ethical Internet Commerce").[98]

By June 2004, Fashion Rock, LLC filed a civil suit for defamation against a number of individuals and companies (the alleged "group of criminals"). According to the Orlando Business journal this was done after Orlando City Council member, Vicki Vargo questioned TCT's practices and whether the city should award Pearlman incentives to move his business to Church Street Station.[99] No evidence was ever presented by Fashion Rock. Defendants alleged the suit was frivolous, and only meant to harass and to hurt them financially. The cases against co-defendants Bill Rosenberger, Les Henderson, and Roberto Villasenor were dismissed. Consequently the whole case was closed. No reasons for the dismissal were revealed by the Court.[100][101][102]

Canadian anti-consumer-fraud expert Les Henderson filed a libel lawsuit against Pearlman, Tolner, El-Difrawi, Rene Chamberlain (Pearlman's Attorney) and several others. The suit is in progress.[103][104] Henderson is the author of the book "Under Investigation" about the talent scouting scandals and the questionable way the now current Florida Governor Charlie Crist and his office handled the case.[105][106]

Fashion Rock, LLC lived on until February 2, 2007 when Bank of America filed a suit against the business.[107] The state shut the company down not more than a week later.[108] In March the assets of Fashion Rock were sold to Californian Alan Joelson company Camino Ventures[109] Their daughter company Talent Rock Holdings, LLC continues to run talent scouting event Talent Rock and its websites since April 2007. Half a year later Talent Rock still used "legendary music manager Lou Pearlman’s multi-Billion dollar Trans Continental conglomerate" as a point of sales.[110]

[edit] Boy band financial scandals

There is no standard industry contract for determining the percentage of profits for recording acts, though the average figures run about 25% to the record label, between 15% and 25% for management and another possible 15% to an agent. Musicians typically get 8 to 10 cents on the dollar, writing credit, and performing credit, while merchandise and tour sales are usually their own to split with a promoter.[111]

Pearlman was paid as a sixth member of the Backstreet Boys.[112][113]

Except for US5, all of the musical acts who have worked with Pearlman have sued him in Federal Court for misrepresentation and fraud. All cases against Pearlman have either been won by those who have brought lawsuits against him, or have been settled out of court. But no matter how they have been settled, all cases have also ended with a confidentiality agreement, meaning none of the parties are allowed to discuss Pearlman's practices in depth. "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."

The members of Backstreet Boys were the first to file a lawsuit against 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, and its members soon followed suit. According to VH1's 100 Most Shocking Rock & Roll Moments, Pearlman and BMG claimed nearly all of the $300 million *NSYNC had made from record, tour, and merchandise sales. This left only $7 million for the five members of the band. Frustrated, *NSYNC attempted to leave RCA and sign with competitor Jive Records, a migration which Pearlman tried to prevent with legal action. Both BMG's and Pearlman's lawsuit and the countersuit filed by *NSYNC were settled out of court.

Former *NSYNC star Justin Timberlake said, during a September 2006 interview with Rolling Stone: "I was being monetarily raped by a Svengali."[114]

At the age of 14, teenage pop star Aaron Carter 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. Carter once again took Pearlman to court in 2006; as of November 1, 2007, according to TMZ.com, Carter had won his bid to emancipate himself from Pearlman. The bankruptcy judge ruled in favor of Carter, ordering that his management and recording agreements were no longer in effect. As to who owned Carter's TransContinental Recordings, the judge had not yet ruled as of November 10, 2007.[115]

[edit] Allegations of inappropriate conduct

For years rumors swirled that Pearlman initiated inappropriate relationships with the boys and young men he worked with. The November 2007 issue of Vanity Fair magazine investigated the claims and found allegations of such conduct made by several former boy band members, including Rich Cronin, 13-year-old members of Take 5, an early member of the Backstreet Boys, and Nick Carter.[116] Despite the innuendo and rumors that dogged him for years, Pearlman was only threatened with going public a few times. At one point an unidentified male singer or singers (it is unknown how many) threatened Pearlman with going public. J. Cheney Mason, Pearlman's long time attorney, confirmed that the situation was turned over to the FBI for investigation as a possible extortion. No charges were ever filed, however, and nothing came out in public. It is unclear if any future charges may be filed in relation to the claims.[116]

[edit] References

  1. ^ Time Magazine Big Poppa's Bubble Gum Machine
  2. ^ USA Today Lou Pearlman appears at hearing in Guam
  3. ^ tampabay.com Unraveling a transcontinental fraud
  4. ^ orlandosentinel.com More coverage of the Lou Pearlman saga
  5. ^ MSNBC.com
  6. ^ Orlando Sentinel Boy band mogul Lou Pearlman sentenced to 25 years in federal prison
  7. ^ Reuters Boy band mogul Pearlman sentenced to 25 years
  8. ^ The Associated Press Boy band creator Pearlman sentenced to 25 years' prison
  9. ^ St. Petersburg Times By Helen Huntley, October 21, 2007 In humble Queens, Lou Pearlman was king
  10. ^ Mad About Boys
  11. ^ Orlando Sentinel April 1, 2007 A world out of sync
  12. ^ St. Petersburg Times "Unmasking Lou"
  13. ^ Mad About Boys
  14. ^ New York Post February 22, 2007 BOY BAND KINGPIN'S PENNY ROOTS SHOWING Quote: "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."
  15. ^ Chippendales
  16. ^ Tyler Gray, The Fat Man Sings in Radar Magazine October 7 Issue, p. 91
  17. ^ St. Petersburg TimesThe starmaker
  18. ^ Backstreet Boys, Lucy Love
  19. ^ "Brian Littrell Looks To Reconnect As Dove Co-Host"
  20. ^ "Big in America"
  21. ^ Triple M Music Productions
  22. ^ "US5 could be singing for Soneet"
  23. ^ wftv.com November 14, 2006 - Orlando Businessman, Partner With Lou Pearlman Commits Suicide
  24. ^ St. Petersburg Times December 17, 2006 - High pitches to high yields
  25. ^ St. Petersburg Times December 21, 2006 - Investors' cash gets stuck in plan
  26. ^ Orlando Sentinel December 22, 2006 - Savings plan is under inquiry
  27. ^ St. Petersburg Times December 28, 2006 - Airline to halt savings program
  28. ^ PDF Copy of Complaint
  29. ^ Orlando SentinelThomas Lee, Minneapolis Star-Tribune. Posted January 12, 2007 Lou Pearlman faces lawsuit over bank loan
  30. ^ Image:Integra v Pearlman.pdf
  31. ^ Image:American Bank of St Paul v Lou Pearlman.pdf
  32. ^ St. Petersburg Times January 9, 2007 Bank sues dealmaker over debt
  33. ^ Orlando Sentinel January 20, 2007 Pearlman fights latest loan-default allegations
  34. ^ St. Petersburg Times January 23, 2007 Investor sues over savings
  35. ^ Orlando Sentinel January 25, 2007 Pearlman's Gulfstream jet is seized by deputies
  36. ^ MSNBC / WESH.COM January 27, 2007 Pearlman In Trouble Again?
  37. ^ Orlando Sentinel January 28, 2007 Pearlman's money woes follow him downtown
  38. ^ www.wftv.com February 2, 2007 State Takes Over Lou Pearlman's Embattled Orlando Company
  39. ^ St. Petersburg Times Blog: Money Talk February 2, 2007 State: Trans Continental Savings Program a Fraud
  40. ^ Orlando Sentinel February 3, 2007 Pearlman to lose control of 3 entities
  41. ^ FOXNews.com February 2, 2007 By Associated Press Lawsuits Against Backstreet Boys Impresario Lou Pearlman Reaches $130 Million
  42. ^ Orlando Sentinel February 6, 2007 Pearlman, companies face $317 million in claims
  43. ^ Radar Magazine Online September 22, 2007 Lou Pearlman's Boy Toys Auctioned
  44. ^ Encore Digital Weekly Magazine March 13, 2007 Associated Press North Dakota Banks Caught Up In Music Promoter Scam
  45. ^ Orlando Sentinel February 7, 2007 Pearlman empire's legal woes add up
  46. ^ Orlando Sentinel February 10, 2007 Red flags spanned more than a decade
  47. ^ Orlando Sentinel February 10, 2007 Timeline of an entertainment mogul
  48. ^ Orlando Weekly February 15, 2007 TOLD YOU SO, PART 2
  49. ^ Reuters February 15, 2007 U.S. agents raid Florida offices of boy band creator
  50. ^ Orlando Sentinel February 15, 2007 Authorities serve warrant on Pearlman companies
  51. ^ Gainsville.com February 15, 2007 Associated Press: Boy band architect's Orlando offices searched by FBI
  52. ^ wftv.com February 15, 2007 Lou Pearlman's Orlando Business Raided By FBI Agents
  53. ^ Orlando Sentinel February 16, 2007 Feds raid Pearlman offices, mansion
  54. ^ Orlando Sentinel February 21, 2007 Lou Pearlman resigns from Trans Continental Airlines
  55. ^ Orlando Sentinel February 21, 2007 Pearlman company files for bankruptcy protection
  56. ^ Orlando Sentinel February 28, 2007 Pearlman loses control of 10 more businesses
  57. ^ Radar Magazine Online September 22, 2007 Lou Pearlman's Boy Toys Auctioned
  58. ^ www.pearlmantranscon.com Website of Soneet R. Kapila, Chapter 11 Trustee of the bankruptcy estates of Louis J. Pearlman and Trans Continental Airlines, Inc.
  59. ^ Lou Pearlman Taken Into Custody In Indonesia
  60. ^ Tampa Bay's WTSP 10 News Pearlman indicted on fraud charges
  61. ^ Central Florida 13 News Pearlman Trial Date Set for September 4
  62. ^ WFTV.com News Pearlman Trial Scheduled To Start In March Of 2008
  63. ^ St. Petersburg Times March 6, 2007 Lawsuit faults Crist in giant Ponzi scheme
  64. ^ Radar MagazineTyler Gray, The Fat Man Sings in October 7 Issue, p. 91
  65. ^ St. Petersburg Times October 21, 2007, In jail and on the phone, Lou Pearlman reverses the charges
  66. ^ Chicago Tribune March 7, 2008, Boy band mogul Pearlman pleads guilty
  67. ^ Modeling Story Defrawi Consulting Group - Alec Defrawy / Alec Defrawi
  68. ^ a b Hillsborough County Clerk Case nr 91-CF-014205 Michael Difrawi tried for child abuse and aggravated child abuse.
  69. ^ Washington Post March 12, 1996 Man Gets Four Years in Fraud Case
  70. ^ Orange County Clerk of Courts Difrawi misdemeanor case, September 2006
  71. ^ Orlando Sentinel Archives July 26, 2006, Contract-breach claim against Pearlman tossed; today the jury is expected to get the case that still involves fraud and trademark infringement. (paid access)
  72. ^ Orlando Sentinal Archives October 5, 2003, "SCOUTING NETWORK'S HISTORY TROUBLES PEARLMAN; TWO ASSOCIATES HAD FRAUD CONVICTIONS; A THIRD SETTLED A SUIT ALLEGING DECEPTION." (paid access)
  73. ^ Orlando Sentinel Archives October 30, 2003, LOU PEARLMAN FILES $100 MILLION LAWSUIT (paid access)
  74. ^ Barker, T. (October 5, 2003). "SCOUTING NETWORK'S HISTORY TROUBLES PEARLMAN; TWO ASSOCIATES HAD FRAUD CONVICTIONS; A THIRD SETTLED A SUIT ALLEGING DECEPTION." Orlando Sentinel
  75. ^ SEC Info Trans Continental Entertainment Group Inc - 8-K For 10/7/02
  76. ^ BBB about Fashion Rock LLC
  77. ^ New York Post January 26, 2002 - MANNEQUIN MESS TOP AGENCIES DENY CONNECTION TO EMODEL
  78. ^ New Times Broward-Palm Beach September 6, 2001 - Hustling for Models
  79. ^ Click on Detroit Hidden Cameras Expose Talent Agency Scam
  80. ^ I Am Not A Model, Jane Magazine, March 2003
  81. ^ Fox 61 NEWS Hartford, CT The Model Scam
  82. ^ Komo 4 News Seattle buyer Beware: Ever Thought About Being A Model?
  83. ^ KSAT, San Antonio Is eModel Golden Opportunity Or Big Business?
  84. ^ Orland Weekly Lou's Next Move
  85. ^ BBB report on Industry Magazine
  86. ^ Orlando Weekly More Bad Karma
  87. ^ National Arbitration Forum Decision - Industry Publications LLC v. Industry magazine
  88. ^ Federal Trade Commission FTC Darkens the Runway Lights of Virginia-based Modeling Agencies
  89. ^ www.sunbiz.org TOOSPOILED.COM
  90. ^ sunbiz.org INTERNET SOLUTIONS CORPORATION
  91. ^ Model Agency Labeled a Scam
  92. ^ Office of Consumer Affairs Wilhelmina Scouting Network, Modeling Agency
  93. ^ KRON 4 February 18, 2003 - Modeling Agency: Big Fees, Small return
  94. ^ Orlando Sentinel Archives September 10, 2003 ASPIRING MODELS TOLD TO MONITOR CREDIT CARDS; THE DATABASE OF A COMPANY OWNED BY LOU PEARLMAN MAY HAVE BEEN COMPROMISED (paid access)
  95. ^ local10.com: State Ends Probe Into Pearlman's Former Model-Scouting Company
  96. ^ tolner.com, PDF document: John MacGregor providing status of the Options Talent investigation
  97. ^ web.archive.org internethatesites.com
  98. ^ web.archive.org beiconline.com
  99. ^ Orlando Business Journal March 7, 2003 Trans Continental sues to protect reputation
  100. ^ Orlando Weekly: Pearlman's jihad
  101. ^ Clerk Circuit Court Orange County Florida Search Fashion Rock, Case number 48-2004-CA-004844-O
  102. ^ Image:FR2ndAmmended.pdf
  103. ^ Ontario Superior Court of Justice Court File No. C-8937-05 - Henderson vs Pearlman, Tolner, El-Difrawi a.o.
  104. ^ CanLII - 2006 Henderson v. Pearlman, 2006 Ontario Superior Court of Justice
  105. ^ New York Post September 24, 2006 LOUIE WASN'T 'N SYNC / LAWSUIT BACKFIRES "LOU Pearlman picked the wrong guy to sue"
  106. ^ The Gainsville Sun (October 3, 2006) Book: Crist tried to "whitewash" probe"
  107. ^ Orlando Sentinel February 2, 2007 Pearlman hit with another huge suit
  108. ^ St. Petersburg Times Blog: Money Talk February 9, 2007 State shuts down Fashion Rock
  109. ^ Orlando Sentinel March 24, 2007 Pearlman's talent-scout company sold
  110. ^ talentrockinfo.com Talent Rock Information, featuring the "legendary music manager Lou Pearlman’s multi-Billion dollar Trans Continental conglomerate".
  111. ^ Mitch Weiss, Managing Artists in Pop Music: What Every Artist and Manager Must Know to Succeed
  112. ^ Mad About Boys
  113. ^ Mitch Weiss, Managing Artists in Pop Music: What Every Artist and Manager Must Know to Succeed
  114. ^ The Sunday Herald Interview Justin Timberlake 24 September 2006 ((c) 2006 Rolling Stone)
  115. ^ St. Petersburg Times June 25, 2002. Lawsuit: Pop star's manager a racketeer
  116. ^ a b Bryan Burrough (November 2007). Mad About The Boys. Vanity Fair. Retrieved on November 2007.

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