summary
- Lou Pearlman's rise in the music industry was fueled by his fraudulent schemes, in which he deprived his clients of their profits.
- Eventually, the Backstreet Boys and NSYNC took legal action against Pearlman, severing ties after years of deception.
- Perlman's criminal actions caught up with him, leading to a 25-year prison sentence and his death in 2016.
Whether it was leather jackets, chunky boots or baggy cargo pants, the 2000s were full of memorable moments, but the trendsetters behind those fashion choices really captured the imagination in the mid-90s. World-famous boy bands Backstreet Boys and *NSYNC rose to stardom during that time, but the engine behind their massive success was their manager, Lou PerlmanWhile Pearlman was supposed to ensure fair treatment and continued success for the bands, he was revealed to be the person behind one of the largest Ponzi schemes, laundering money and engaging in other fraudulent activities.
NetflixNew documentary, Dirty Pop: The Boy Band ScamThis series reveals the details behind Lou Pearlman's rise and fall, but instead of just looking at the available facts, the three-part series includes numerous interviews with former employees and even some of the members of the boy bands he took under his wing. Without further ado, let's take a look at the real story behind Dirty Pop: The Boy Band Scam.
Who is Lou Pearlman, and how was he involved in the music industry?
Although Lou Pearlman became a well-known businessman in the music industry, his background had few connections to his new career. Perlman's success began in the aviation industry.He made his living by leasing planes to famous musicians. Although his company, Trans Continental, brought him a lot of money, he always wanted more. Once he discovered how much money the musicians who used his planes were making, he decided it was time for a dramatic change in his career.
Calling himself a talent manager, he entered the music industry with the goal of managing boy bands and other artists. His idea was inspired by the success of the boy band New Kids on the Block, which rose to fame in the late 1980s and early 1990s. Dedicated to his business idea, Pearlman embarked on a $3 million talent search and hand-picked the five members of the band known as the Backstreet Boys.After some initial difficulties, the band achieved massive success, which allowed Pearlman to form a second band, the famous *NSYNC. Both bands achieved great success worldwide, which led Pearlman to manage more bands and artists, such as O-Town, Take That, Aaron Carter, and US5.
Lou Perlman's Fall From Grace
After years of success, The facade of Lou Perlman's empire began to crack. When a few of his clients sued him for fraud. The Backstreet Boys were the first to file a lawsuit against Pearlman in 1998 for unfair payments. The band claimed that their manager made $10 million, while the members only made $300,000 during five years of working with him.
In addition, he secretly made himself the sixth member of both bands, keeping more of the money for himself. Pearlman used the successful image of his boy band to attract private investors to join his side, convincing them to invest in his other businesses, which were apparently part of TransContinental but never actually existed. His Ponzi scheme, a type of fraud that focused on paying off existing investors with new investors’ money, was in full swing.
Although his scam was carefully planned, Ultimately, Transcontinental collapsed in 2006.The reason for this was that finding investors willing to put their money into Trans-Continental was becoming increasingly difficult, and with that number declining, it was becoming nearly impossible to repay previous investors. In response to his collapsing success, Perelman fled the country before the FBI could raid his company and home. What was found was simply astonishing.
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Perelman owned no aircraft within Transcontinental; he had no proper operations; he was running a massive fraud. He forged signatures and seals, while also creating completely fake bank statements. Everything about his business and his finances was tainted with fraud, and the people who had to pay the price were those who believed him.
The documentary also raised allegations of child sexual abuse, who claims that Perlman exploited younger childrenWhile boy band members such as Erik Michael Estrada had no such experiences, it was reported that Pearlman displayed inappropriate behavior by asking the boys to show him their abs and repeatedly grabbing their arms. Additionally, Pearlman's former assistant also stated that the manager was always very sensitive, especially with younger children. However, Lou Pearlman was never convicted of any allegations of child molestation, and public opinion is clearly divided.
What happened to the Backstreet Boys and *NSYNC?
Both the Backstreet Boys and NSYNC spent years following Pearlman’s approach, but when the members were paid so little, doubts arose. While they poured all their time and energy into performing, growing a platform, and making money, they only saw a fraction of what they achieved. Pearlman, on the other hand, kept a large portion for himself and used it to continue his schemes until his empire fell.
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As a result, the Backstreet Boys and NSync bought out their manager for a whopping $64 million, and their professional relationship with Pearlman ended after they decided to take legal action against him. They found success without it.But the emotional toll it had on them was far from over. Pearlman was not just their manager, he became one of their closest confidants, even taking on a fatherly role to many of them. Pearlman broke the trust of everyone around him, but it’s almost impossible to deny that the Backstreet Boys and NSync owe a large part of their success to their manager.
Where is Lou Perlman today?
After Perelman’s scam was exposed, the notorious manager faced the consequences of his criminal actions. Although he still seems to be proud of how he pulled off such a massive scheme, he was eventually brought to justice and convicted of money laundering, conspiracy, and lying about bankruptcy. He was sentenced to 25 years in prison with a release date of 2029.But a different fate awaited the man who never saw himself as a true criminal. On August 19, 2016, it was announced that Lou Pearlman died of a heart attack while in prison..
Dirty Pop: The Boy Band Scam It is revealed that Pearlman stole an incredible $500 million, of which only $10 million was ever recovered. Over a 30-year period, as many as 2,000 people, families, and individuals entrusted Pearlman with their money, but ultimately never saw the money again. Lou Pearlman made history as the man behind one of the longest-running Ponzi schemes in American history. Dirty Pop: The Boy Band Scam It is streaming on Netflix.
