I came across this story this morning on a re-broadcast of Inside Edition. I totally missed this one.
Lou Perlman, the man behind the Backstreet Boys, N'Sync, and the original Making The Band group, O-Town, is accused of defrauding investors out of millions.
When I say millions, I'm talking $500 million!
He was arrested at a resort in Indonesia, where he was registered under the alias, 'Incognito Johnson'(hilarious) and with $25,000 cash in his possession.
Perlman has been sued in the past by all his former artists including Backstreet, N'Sync, and Aaron Carter for his misdealings with their money. All of those cases were either settled out of court or won by those who brought lawsuits against him.
Former N'Sync star, Justin Timberlake said in a 2006 interview with Rolling Stone: "I was being monetarily raped by a Svengali".
Lou Perlman was the ultimate music mogul who just got too greedy.
Recently, his platinum and gold records from his former artists were sold in a public auction. And his companies have been overtaked by a court appointed receiver, having receivership over the assets of Trans Continental Airlines, Inc., Trans Continental Airlines Travel Service, Inc., Trans Continental Enterprises, LLC., Louis J. Pearlman Enterprises, Trans Continental Records, Trans Continental Talent, Fashion Rock, Trans Continental Travel Service, Trans Country music Group, Trans Continental Studios, Trans Continental Aviation and Aegis Consulting.
Source: Wikipedia
And he's not the only one up to no good. Anyone out there trying to get in the record business watch your money. How many of these stories do you need to hear?
