Lou Pearlman and his 20+ year Ponzi explored

A few weeks ago we showcased the story about Lou Pearlman, the mastermind behind a long running PONZI.  How exactly did this PONZI work? The  court documents along with news reports reveal many interesting facts and twists. 

In 1981, Lou Pearlman conceived an idea and built it around two companies Transcontinental Airlines Travel Services sand Transcontinental Airlines, Inc. The company was to own and/or operated airplanes and offer travel agency services. To raise capital for the business Lou Pearlman decided to sell shares to investors who he sought out. 

For 20 years Lou Pearlman sold trancontinental shares convincing investors that company was worth millions, was doing well and was profitable. Here is a quote from press release of the Department of Justice, Middle District in Florida.

Pearlman represented to thousands of investors and several federally insured financial institutions that those two companies were successful companies in the airline business and that Pearlman’s ownership interest in those companies was worth millions of dollars. That was not true.

The reality was the company existed on paper only. Those companies had minimal employees, business operations, and revenue.  After 1999 it ceased to exist legally as Delaware officials voided its incorporation that year.

In turns out to the dismay of the Judge and observers, Transcontinental Airlines Travel Services did not own or lease one single plane. The shocked judge asked if nobody thought it prudent to check by visiting an airport.

Here is the answer to that question 

In fact, according to a childhood friend of Pearlman’s, the photos Pearlman used to market the airline featured models, not real planes: “You notice you can’t see the entire airplane. You can’t see the tail numbers. You know why? Because that’s where Lou was holding his fingers! It’s a model. It’s one I built for him.”**

See the photo here http://blogs.tampabay.com/money/2008/05/by-popular-requ.html

Pearlman lived large

The portly Pearlman loved the limelight, even recording a short video about his lifestyle, “Lou Pearlman Living Large,” which he often popped into the VCR in his opulent office when investors visited. It features a Lou-guided tour of his Mediterranean mansion outside Orlando in suburban Windemere, with boats and jet skis docked out back on Lake Butler. He shows off his fleet of luxury cars and diamond-studded Rolex watch with matching ring and cuff links that he claims are worth $425,000.***

In part 2 we will look at who was conned, more methods used and one scheme leads to another.

Sources:

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2 Responses

  1. I hope the fat old man rots in jail. It is sad that our government would let this man continue to get away with things. I have in my possession a file of documents and evidence that should have put Lou Pearlman in jail 14 years ago. But the sad thing is that no one would believe a woman. I went to the FBI and state athorities but everyone took it as a joke. My Mom and I lost 1/2 million to Lou Pearlman and Tom Markell’s scams. I wasn’t the only one. After spending the rest of my hard earned money hiring a sorry attorney that never did anything but just try and get more money from me. I had to let it go or it was going to kill me. Tony DeCamillas , Tom Markell and Lou Pearlman are the lowest people on the earth. I still have all the paperwork and all the evidence to take all of them down. But its a shame I have to spend my money to get my money back. Thanks for all the help Pam Pasente FBI and the others that let these lowlife criminals walk free. I wish my mother was still here to see this about Pearlman. She lost everything she had to the 3 scam artist. After meeting the fat Pearlman in his Orlando home and at TransCon with Tony DeCamillas and Tom Markell I knew something was wrong with the stories I was being told. The stories they told over and over throughout the years were the same ones they used to scam money from everyone. IPO story. I just hope that while Pearlman is in jail someone will see it fit to wipe out the fat ugly old man. Too bad they didn’t take out Tom Markell during one of his stays in prison. The government look at how they punish the criminals. Going to let Pearlman trade what he finds out in jail so to shorten his stay. Justice!!!! The victims are the ones that are treated like criminals. Has the law done anything to help all the people that were scammed???No and they won’t. You can get your name on the class action lawsuit but for what??? Think anyone will receive a dime from this?? Think again. Just hope he dies in there before they decide to let the con go free again.

  2. We were taken advantage of by a Lou Pearlman promotion called “Talent Rock” in 2006. How do we get our money back?

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