Louis Jay Pearlman, known as Lou Pearlman, was an American record producer and manager. He is best known for creating and managing successful boy bands such as the Backstreet Boys and NSYNC. Pearlman’s career, however, was marred by his involvement in one of the largest and longest-running Ponzi schemes in history.
Early Life
Lou Pearlman was born to a Jewish family in Flushing, Queens. He was the first cousin of Art Garfunkel of the famous duo Simon & Garfunkel. Pearlman showed an early interest in music and business. He studied at Queens College and later at New York University, where he majored in accounting.
Career
Music Industry:
Pearlman founded Trans Continental Records in the early 1990s. He struck gold with his first major boy band, the Backstreet Boys, who debuted in 1993 and quickly rose to international fame. Following their success, Pearlman replicated the formula with NSYNC, another wildly popular boy band.
| Attribute | Details |
|---|---|
| Full Name | Louis Jay Pearlman |
| Birth Date | June 19, 1954 |
| Birth Place | Queens, New York, USA |
| Death Date | August 19, 2016 |
| Death Place | Texarkana, Texas, USA |
| Nationality | American |
| Occupation | Record Producer, Manager, Entrepreneur |
| Known For | Managing Backstreet Boys, NSYNC |
| Education | Queens College, New York University |
| Legal Issues | Convicted of running a Ponzi scheme, sentenced to 25 years in prison |
| Net Worth | At height: Hundreds of millions; at death: negative due to legal issues |
Other Ventures:
Apart from music, Pearlman ventured into aviation and blimps. He founded Trans Continental Airlines, a charter airline company. Pearlman also owned a fleet of blimps used for advertising, although many of these ventures were later revealed to be fraudulent.
Legal Issues:
Pearlman’s success came crashing down in the mid-2000s when it was discovered that he had been running a Ponzi scheme for over 20 years. He defrauded investors out of more than $300 million, using funds from new investors to pay off older ones, while siphoning money for his personal use. In 2008, Pearlman was sentenced to 25 years in prison for conspiracy, money laundering, and making false statements during a bankruptcy proceeding.
Bankruptcy
Pearlman and his companies were forced into involuntary bankruptcy in March 2007. Trustees and lenders intended to auction off Pearlman’s assets and personal belongings, including a mansion full of well-known works of art and priceless memorabilia. They quickly discovered the art and memorabilia was mostly fake. What could be sold was auctioned through eBay and a traditional bankruptcy auction house.
Church Street Station, a historic train station in downtown Orlando which Pearlman had purchased in 2002, was sold at a bankruptcy auction in April 2007 for $34 million. Several of Pearlman’s belongings, including his college degrees, were purchased by The A.V. Club journalist and film critic Nathan Rabin during the eBay auction.
Net Worth
At the height of his career, Pearlman’s net worth was estimated to be in the hundreds of millions. However, due to his criminal activities and subsequent legal issues, his assets were seized, and he died with a negative net worth.
Death
In 2008, Pearlman began his prison sentence with a projected release date of March 24, 2029. However, he suffered a stroke in 2010 while incarcerated. He was diagnosed with an infection of a heart valve. Pearlman had surgery to replace a heart valve a few weeks before his death. The prison took him to a hospital where he was scheduled for another surgery.
Pearlman ultimately died while still in custody at the Federal Correctional Institution in Miami, Florida, on August 19, 2016, from cardiac arrest. He was buried ten days later on August 29, 2016, in the family burial area. He was 62 years old.
