Make us your home page
Instagram

Guilty plea deal calls for Lou Pearlman to tell all

Now that former music producer Lou Pearlman has agreed to plead guilty to federal fraud charges, prosecutors are expecting him to talk. A lot.

His plea agreement, filed in federal court Tuesday, calls for him to "cooperate fully" in the identification and recovery of assets, to give interviews and to produce documents. The objective: recovery of some of the more than $300-million he admits he stole from investors and banks.

Pearlman, who is scheduled to enter his guilty plea in court Thursday, hopes to earn a reduction in the 25-year maximum sentence U.S. District Judge G. Kendall Sharp could impose.

The onetime music mogul, who launched *NSNC and the Backstreet Boys, agreed to make full restitution to his victims. However, he's already told the court he doesn't have any money (he qualified for a public defender) and there is no penalty for poverty. But if he ever acquires any assets in the future, the obligation to make repayment is there.

The plea agreement contains a substantial penalty for failing to provide full and honest disclosure and cooperation. Pearlman, 53, could be prosecuted for perjury and numerous additional fraud charges could be brought against him.

Pearlman has agreed to plead guilty to four counts, two of them conspiracy charges related to investment fraud and bank fraud, and involving mail and wire fraud, one count of money laundering and one count of bankruptcy fraud.

He admits in the agreement to running a double Ponzi scheme, raising money from both investors and banks through lies and falsified documents and then using part of that to pay off earlier investors and lenders as well as appropriating money for himself.

Disclosures in the plea agreement include:

• Trans Continental Airlines, which Pearlman presented to investors and banks as a successful charter airline, had no revenues, no planes, no employees and no contracts with airlines.

• The last tax return Pearlman filed, for 2001, showed a loss of $3-million. Fake tax returns he supplied banks to get loans showed income of more than $10-million every year.

• While he was on the run last year, Pearlman used e-mail to keep up to date on his personal and corporate bankruptcy cases and to direct others to prepare false documents to be filed in bankruptcy court.

• Documents found in Pearlman's briefcase when he was caught in Indonesia last year show he was creating a seal and other documents to try to make German Savings Bank look like a legitimate institution.

• Unnamed co-conspirators played key roles in the frauds, including preparing false documents, lying to investors about how the savings program worked, covering up facts to keep government investigators at bay and using investor and bank money for their own benefit.

Helen Huntley can be reached at hhuntley@sptimes.com or (727) 893-8230. Go to blogs.tampabay.com/money to see a copy of the plea agreement and read more about the Lou Pearlman case.

Guilty plea deal calls for Lou Pearlman to tell all 03/04/08 [Last modified: Wednesday, March 5, 2008 5:22pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Amazon receives 238 proposals from places eager to become its 2nd headquarters

    Business

    NEW YORK — Amazon said Monday that it received 238 proposals from cities and regions in the United States, Canada and Mexico hoping to be the home of the company's second headquarters.

    Earlier this month, an Amazon employee gives her dog a biscuit as the pair head into a company building, where dogs are welcome, in Seattle. Amazon says it received 238 proposals from cities and regions hoping to be the home of the company's second headquarters. 
[AP Photo/Elaine Thompson]
  2. Target says customers want it to pause the Christmas creep

    Retail

    NEW YORK — Target says customers want it to pause the "Christmas creep." It says it wants to be more in tune with customers' mindset, so it plans to ease in holiday promotions this year while better recognizing Thanksgiving.

     Target says customers want it to pause the "Christmas creep." It says it wants to be more in tune with customers' mindset, so it plans to ease in holiday promotions this year while better recognizing Thanksgiving. This is Target's new store in Manhattan's Herald Square that opened last week. 
[Kavita Kumar/Minneapolis Star Tribune/TNS]
  3. Tampa's Walter Investment Management restructuring, could file for bankruptcy

    Corporate

    TAMPA — Tampa-based Walter Investment Management Corp. is restructuring to cut down some of the mortgage firm's $700 million debt, Walter announced Friday night. The firm, according to its investor relations page, focuses on subprime and "other credit-challenged" mortgages.

    Walter Investment Management is restructuring to reduce its $700 million debt, the company announced late Friday. Pictured is Anthony Renzi. CEO. | [Courtesy of LinkedIn]
  4. Carrollwood fitness center employs scientific protocol to help clients

    Business

    In 2005, Al Roach and Virginia Phillips, husband and wife, opened 20 Minutes to Fitness in Lakewood Ranch, and last month they opened the doors to their new location in Carrollwood.

    Preston Fisher, a personal fitness coach at 20 Minutes To Fitness, stands with an iPad while general manager/owner Angela Begin conducts an equipment demonstration. The iPad is used to track each client's information and progress. I also included one shot of just the equipment. The center recently opened in Carrollwood. Photo by Danielle Hauser.
  5. Olive Tree branches out to Wesley Chapel

    Business

    WESLEY CHAPEL — When it came time to open a second location of The Olive Tree, owners John and Donna Woelfel, decided that Wesley Chapel was the perfect place.

    The Olive Tree expands its offerings of "ultra premium?€ extra virgin olive oils (EVOO) to a second location in Wesley Chapel. Photo by Danielle Hauser.