Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jeffrey S. Mitchell who wrote (9887)	2/2/2007 9:05:01 PM
From: scion	Read Replies (2) \| Respond to of 12465

The savings program that boy band promoter Lou Pearlman sold to more than 1,000 investors was a massive fraud, Florida regulators said Friday. State: Trans Continental Savings Program a Fraud February 02, 2007 blogs.tampabay.com The savings program that boy band promoter Lou Pearlman sold to more than 1,000 investors was a massive fraud, Florida regulators said Friday. At least $95-million was collected from investors, most of which is gone. Orange County Circuit Judge Renee Roche appointed a receiver to take over Pearlman’s Trans Continental Airlines Inc., which sponsored the savings program, and two affiliated companies, Trans Continental Airlines Travel Service Inc. and Trans Continental Enterprises LLC. The receiver took control of Trans Continental’s offices at Orlando’s Church Street Station Friday night and will attempt to recover assets belonging to the companies and ultimately to investors. 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. They also were ordered not to alter or destroy records related to the savings program. However, their assets have not been frozen. Pearlman is reported to be traveling in Europe. Pearlman was known for launching the boy bands *NSync and the Backstreet Boys, as well as a record company, recording studio and reality TV shows. He presented himself as a multi-millionaire and even wrote an advice book, “Bands, Brands & Billions: My Top Ten Rules for Making Any Business Go Platinum.” However, his empire was built on borrowed money, including the life savings of hundreds of elderly investors. His savings program was presented as an opportunity to earn high yields at no risk by participating in Trans Continental Airlines’ “Employee Investment Savings Account.” Investors were told their accounts were insured by the FDIC with additional insurance from Lloyds of London and AIG. In fact, there was no insurance, the state says. Pearlman transferred investors money to his other businesses, used it to make payments on various bank loans and to pay commissions to the agents who sold it. Investors may contact the receiver, Jerry McHale, at (407) 345-0004. blogs.tampabay.com 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 Message 23182588