$340 Million Ponzi Scheme of Boy band mogul Lou Pearlman

The Pearl Law Firm successfully managed around 300 victims of the Lou Pearlman Ponzi Scheme. Lou was sentenced to 25 years behind bars for his involvement in a Ponzi scheme had defrauded banks, friends, relatives, and the elderly out of over $300 million. Eventually Pearlman died in prison but not before attorney Robert Pearl was able to interview him in prison.

Pearlman, known for his lavish lifestyle with mansions, luxury cars, and a private plane, had operated the fraudulent scheme for over two decades. He admitted to using falsified financial statements to attract investments in two firms, Trans Continental Airlines and Trans Continental Airlines Travel Services, both of which had minimal assets compared to the representations made.

Investors were promised an 18 percent return, and while some initially profited, the Ponzi scheme collapsed in December 2006. The extent of the fraud was substantial, with estimates suggesting that victims in the New York City area alone lost around $60 million.

One victim, Mitchell Albow a client of Pearl Law Firm, lost $4 million, impacting his savings for college and retirement. He described Pearlman as a “sleazebag.” Pearlman’s career in the music industry began in Queens and later moved to Orlando, where he founded the Backstreet Boys in 1993 and ‘N Sync in 1996, though both groups eventually sued him for financial misconduct.

Robert Pearl’s exclusive interview for the film “The Boy Band Con: The Lou Pearlman Story” was used in the documentary film.

If you feel that you have been a victim to a similar scheme, please contact our law firm today to book a free consultation to discuss your case.
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Robert Pearl’s exclusive interview for the film “The Boy Band Con: The Lou Pearlman Story” was used in the documentary film.