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ORLANDO, Fla. -- State investigators are picking through the financial maze of music promoter Lou Pearlman's crumbling empire. Pearlman could be on the hook for hundreds of millions of dollars, and his former employees, investors and investigators want to know where the money is, WESH 2 News reported. The state sent subpoenas to banks Thursday to find out how much money Pearlman has. WESH 2 News got an exclusive look at the inner world of one of the music industry's most successful and controversial promoters and found that Pearlman is very good at spending money. Past the walls decorated with platinum and gold records, posters and pictures from his hit music groups, including 'NSync and the Backstreet Boys, investigators showed WESH 2 reporter Greg Fox the plush office inside Pearlman's Trans Continental Enterprises headquarters. They said that is where Pearlman cemented deal after deal with investors and business partners. Investigators said they want to know if some of that money went into his executive bathroom, with the marble floors, gold fixtures and custom Trans Con embroidered towels. Investigators aim to find out as they pore through Pearlman's business records. Those files were seized and locked up last week after the state alleged in court documents that Pearlman committed securities fraud -- a civil offense. They said they have found evidence Pearlman may have illegally collected more than $300 million from investors. Reported to be in Germany with his latest boy band, Pearlman faces a string of lawsuits from banks and creditors, who claim he owes more than $160 million. Business owners in Pearlman's downtown buildings said they are worried because they don't know whether the investigation with Pearlman will tie up a potential sale of his Church Street properties for a year or more. He owns the collection of historic buildings that once made up the Church Street Station attraction, which was popular in the 1980s. There are about a dozen businesses there now, including restaurants, a comedy club and a wine shop. One business owner who rents from Pearlman is thinking positively, saying a new owner will breathe new life into Church Street. "I think that you're going to see that this station is going to become revitalized," said Mark Dollard, the owner of Absinthe Bistro. "We're not going to need concessions from the city to do so. It's a matter of drawing business back downtown." Originally written by Greg Fox
ORLANDO, Fla. -- State investigators are picking through the financial maze of music promoter Lou Pearlman's crumbling empire. Pearlman could be on the hook for hundreds of millions of dollars, and his former employees, investors and investigators want to know where the money is, WESH 2 News reported. The state sent subpoenas to banks Thursday to find out how much money Pearlman has. WESH 2 News got an exclusive look at the inner world of one of the music industry's most successful and controversial promoters and found that Pearlman is very good at spending money. Past the walls decorated with platinum and gold records, posters and pictures from his hit music groups, including 'NSync and the Backstreet Boys, investigators showed WESH 2 reporter Greg Fox the plush office inside Pearlman's Trans Continental Enterprises headquarters. They said that is where Pearlman cemented deal after deal with investors and business partners. Investigators said they want to know if some of that money went into his executive bathroom, with the marble floors, gold fixtures and custom Trans Con embroidered towels. Investigators aim to find out as they pore through Pearlman's business records. Those files were seized and locked up last week after the state alleged in court documents that Pearlman committed securities fraud -- a civil offense. They said they have found evidence Pearlman may have illegally collected more than $300 million from investors. Reported to be in Germany with his latest boy band, Pearlman faces a string of lawsuits from banks and creditors, who claim he owes more than $160 million. Business owners in Pearlman's downtown buildings said they are worried because they don't know whether the investigation with Pearlman will tie up a potential sale of his Church Street properties for a year or more. He owns the collection of historic buildings that once made up the Church Street Station attraction, which was popular in the 1980s. There are about a dozen businesses there now, including restaurants, a comedy club and a wine shop. One business owner who rents from Pearlman is thinking positively, saying a new owner will breathe new life into Church Street. "I think that you're going to see that this station is going to become revitalized," said Mark Dollard, the owner of Absinthe Bistro. "We're not going to need concessions from the city to do so. It's a matter of drawing business back downtown." Originally written by Greg Fox |
