Posted on 06/19/2007 7:11:54 AM PDT by Renfield
Louis Pearlman, the creator of boy bands like Backstreet Boys and 'N Sync, has been remanded to custody in Guam pending his transfer to Florida where he faces charges of fraud.
Pearlman, 53, was brought last week by FBI agents to Guam, a US territory, after he was handed over by Indonesian authorities who apprehended him at a luxury hotel on the island resort of Bali.
He was produced in the court of Chief Justice Frances Tydingco-Gatewood, who ordered that he be returned to federal jail until he is transferred to Florida.
"It's my understanding from the case agent there's over $US500 million at the time allegedly defrauded from 200 plus investors," David Smith, the FBI's assistant legal attache in Jakarta, told the court.
The case follows a complaint filed in December by the Florida Office of Financial Regulation alleging securities fraud against Pearlman and 16 of his business entities, many of them beginning with the words Trans Continental.
According to the state lawsuit, Pearlman's companies for 15 years sold unregistered securities in what was called an "employee investment savings account" programme, committing securities fraud by implying the money was safe and insured.
But like a Ponzi scheme, according to the complaint, early investors were paid $118 million in dividends from deposits by more recent investors, while $7 million was paid in sales commissions and $US50 million went to Pearlman and two other defendants.
Smith told the court Pearlman had roughly $US20,000 with him when he was apprehended on Bali. He was registered in the hotel under the name "Incognito Johnson".
The court ruled that a request by Pearlman for assistance from the US Public Defender's Office had merit.
Pearlman said he was unaware of the charges against him until he was apprehended on Bali.
"I had no idea there was ever an arrest warrant," he said.
About his registration under a false name, Pearlman said it was common practice in the entertainment industry.
"You're not going to find Tom Cruise under his name, you're not going to find Jennifer Lopez under her name," he said.
This sounds like something from a Simpson's script....
He should be jailed for infilicting Backstreet boys and NSync on us!
Slimy crooks in the music business? No Way!
Boy, that name wouldn't raise any red flags now would it? He might have well just used "On-the-lam Sam".
“Incognito Johnson”? “Ron Mexico” thinks that’s a stupid pseudonym.
Since this guy inflicted the Backdoor Boys and N’Suck on us, can they just go ahead and execute him in Guam? Please?
}:-)4
Send him to Gitmo for being a Music Terrorist.
Those boy bands really blew
Especially, Lance Bass.
Anyone here Incognito?
His Biggest fraud was passing off N’Sync and the backstreet Boys as legitimate musical talent.
Unknown.
'N Cognito.
Preach it Brother!!! Undoubtedly one of the most painful experiences of parenting was taking my daughter and her friend to an NSync scream fest in Portland. 5,000 screaming adolescent girls with hormones raging.
On the positive side, the experience totally cured my daughter of her celebrity craze phase.
>>He was registered in the hotel under the name “Incognito Johnson”. This sounds like something from a Simpson’s script....<<
I believe it was The Simpsons episode about Marge’s fear of flying where we meet Homer’s mustached lookalike...his name: Don Incognito. :)
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