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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (9837)	10/30/2006 9:58:59 PM
From: Bill Ulrich	Respond to of 12465

<clap clap!> (Jeff -- is there a connection between jhollen and zweb? I was previously unaware of any such. Fill me in?)

To: Jeffrey S. Mitchell who wrote (9837)	1/13/2007 9:16:20 PM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 12465

Re: 1/12/07 - [Zwebner] Fashion Rock v. Torelli, Rosenberger, Henderson, Villasenor, etc.: Minneapolis Star-Tribune: Lou Pearlman faces lawsuit over bank loan; St. Petersburg Times: Bank sues dealmaker over debt Lou Pearlman faces lawsuit over bank loan Thomas Lee \| Minneapolis Star-Tribune Posted January 12, 2007 MINNEAPOLIS -- American Bank of St. Paul is suing Orlando businessman Lou Pearlman for failing to pay back a $28.5 million loan relating to an attempt to buy a British television show. Pearlman took out the loan in March 2006 to refinance debt and to purchase Top of the Pops, a long-running weekly music show the BBC canceled last year, according to papers filed Wednesday in U.S. District Court in Minneapolis. It is not clear whether Pearlman actually bought the show. To back the loan, Pearlman offered as collateral a stake in Trans Continental Airlines Inc., a charter service, and in Trans Continental Records Inc., which still owns royalty rights to songs from the Backstreet Boys and 'N Sync, two top-selling boy band acts. The bank, which says Pearlman has not made any payments on the loan, is now fighting for a stake in the companies. Pearlman's current artists include Aaron Carter and Jordan Knight, a former member of the group New Kids on the Block. William Wasseiler, an attorney for American Bank, declined to comment. In an e-mail statement, Trans Continental spokeswoman Elizabeth Neff said, "We are working with the bank to resolve the matter." American Bank's lawsuit is the latest legal headache for Pearlman. Integra Bank, based in Evansville, Ind., recently filed a lawsuit against Pearlman, claiming he owes the bank $18 million. Pearlman also used a stake in Trans Continental Airlines to secure those loans. Last month, Pearlman and Trans Continental Airlines agreed to stop selling a savings program that Florida regulators said was illegal. The state Office of Financial Regulation sued Trans Continental Airlines in Orange County Circuit Court, saying the company's Employee Investment Savings Account was an unregistered security that violated Florida law. The company denied the charges but agreed to halt sales. Trans Continental Airlines and Trans Continental Records are two of several businesses owned by Pearlman. He also is majority owner of Church Street Station, the downtown Orlando commercial complex where his Trans Continental companies are based. They also include Trans Continental Studios and Talent Rock, a sponsor of talent-search events. orlandosentinel.com ===== Bank sues dealmaker over debt Orlando's Lou Pearlman and his airlines owe $ 18-million, the bank says By HELEN HUNTLEY, Times Personal Finance Editor Published January 9, 2007 Orlando entertainment entrepreneur Lou Pearlman and his company, Trans Continental Airlines, are either broke or simply not willing to pay their debts, Integra Bank claims in a lawsuit recently filed in federal court in Orlando. The bank says Trans Continental stopped paying last summer-the same time investors in a savings program the airline sponsors began having trouble getting their money back. The lawsuit says "tremendous dividends" paid to Pearlman and other insiders left the company without enough cash to pay its debts. The Evansville, Ind., bank says Trans Continental and Pearlman owe it more than $18-million and asks the court to award it Pearlman's stake in the company, which was used as security for the loans. Trans Continental owes far more to investors who signed up for the company's "Employee Investment Savings Account" based on promises of high yields and FDIC insurance. Investors, many of them local, say they can't get their money back and the company doesn't return their telephone calls. The state says the investment is an unregistered security and was sold illegally, a claim the company denies. The Office of Financial Regulation and Trans Continental are now cooperating on an independent review of the savings program's books. Integra Bank said it loaned Pearlman money based on a personal financial statement that he had liquid assets worth more than $8-million. Pearlman's business empire includes a recording studio, record company and reality TV shows. He may be best known as the producer who launched Orlando boy bands *NSYNC and the Backstreet Boys. [Last modified January 9, 2007, 00:38:47] sptimes.com