MUSIC mogul Lou Pearlman is the subject of a new documentary about how he created the biggest boy bands of the ’90s — and one of the largest Ponzi schemes in history.
Read on to find out more about who the late music manager was, and why he was jailed.
Lou Pearlman was the music mogul who discovered the Backstreet Boys and N’SYNC in the ‘90s.
He had even more success in the following years, forming and managing a number of top US bands and artists.
But things turned sour when Pearlman was jailed in 2008.
He was handed a 25-year sentence connected to one of the US’s most notorious Ponzi schemes, which saw him defraud investors of over $1 billion.
He died behind bars in 2016.
Lou Pearlman started a talent search in the ‘90s for a new boyband to rival the success of US group New Kids on the Block.
The five young men he discovered became the Backstreet Boys, and they went on to become one of the best-selling boybands of all time.
He then went on to form Justin Timberlake‘s group N’SYNC, who went on to take the pop crown from the Backstreet Boys.
His success continued when he put together O-Town, LFO and Take 5.
In 2006, investigators discovered Lou Pearlman had defrauded investors out of more than $1 billion.
He’d come up with a scam that encouraged people to invest in a company that didn’t even exist.
Pearlman used fake insurance documents to encourage investors to put their money into his scheme.
He also used fake financial statements to secure bank loans.
When it came to light he’d been running a huge fraud, most of the money he’d collected from investors – at least $95 million – was gone.
Pearlman disappeared from the US, but was eventually arrested the following year after being spotted in Indonesia.
In 2008 he was sentenced to 25 years in prison on charges of conspiracy, money laundering, and making false statements during a bankruptcy proceeding.
Lou Pearlman my old manager died in prison… Rip Lou not the best business guy really at all but he did discover me karma is real.”
Aaron Carter
Dirty Pop: The Boy Band Scam is a documentary on streaming service Netflix.
It’s available to watch from July 24, 2024.
Netflix have a number of packages, including one that’s supported by adverts, or more expensive ones that are ad-free and offer improved picture and sound.
Viewers can watch shows through their Smart TV or through their phone or tablet.
