The documentary “Dirty Pop: The Boy Band Scam”is now available on Netflix, chronicling the success and downfall of talent manager and con artist Lou Pearlman.
Hoaxes and con artists are a familiar topic in the true crime genre, with the trend starting with Netflix’s Tinder Swindler.
In recent news, the topic of fertility fraud was brought to attention in The Man With 1000 Kids, while the resurgence of Sherri Papini’s kidnapping hoax gained attention with the release of Hulu’s Perfect Wife.
One of the unique aspects of Dirty Pop: The Boy Band Scam is its inclusion of interviews with members from popular boy bands Backstreet Boys and *NSYNC. However, what about the man responsible for bringing them together?
Lou Pearlman’s Identity
Lou Pearlman, a businessman and talent manager, was born in 1954 in New York. He was most recognized for creating popular boy bands such as Backstreet Boys and *NSYNC during the 1990s, but his criminal actions eventually became public knowledge.
In the ’80s, he entered the aviation industry and founded Airship International, a company that specialized in advertising using blimps.
Nevertheless, after experiencing multiple crashes of his blimps within a brief timeframe, he decided to move to Florida and establish Trans Continental, which encompassed various enterprises such as an airline and a record company.
During this period, Pearlman, who was initially inspired by his first cousin Art Garfunkel’s involvement in the music industry, became captivated by the achievements of New Kids on the Block.
He continued to create boy bands, including *NSYNC and the Backstreet Boys, through his Trans Continental label and funded their lavish rock ‘n’ roll lifestyle. Additionally, he formed other groups, such as O-Town, LFO, Take 5, and Natural, many of which were assembled on his television series Making The Band.
Despite portraying himself as a visionary entrepreneur and using his supposed airline company to establish credibility, Pearlman’s entire empire was ultimately revealed to be a facade, ultimately resulting in the exposure of one of the largest and most notorious Ponzi schemes in history.
A Ponzi scheme is a dishonest investment scheme that guarantees large profits with minimal risk to its investors. Instead of using legitimate business activities or genuine profits, early investors are paid with funds from newer investors.
What did he do?
Despite appearing highly successful, Pearlman spent years persuading numerous private investors and banks to invest hundreds of millions of dollars in his Trans Continental aviation businesses, even though they were non-existent.
Pearlman would use deceitful tactics, such as creating false documents, to deceive individuals including artists, acquaintances, and business associates into putting their savings into a supposed “FDIC-insured”savings program for non-existent companies.
The Netflix docu-series uncovers that the planes showcased in the brochures for his Trans Continental Airlines were merely toys arranged on a runway to give the illusion of being full-sized.
Pearlman used a model plane to advertise Trans Continental Airlines
Despite his success, Pearlman was no stranger to legal battles with his musical acts, beginning with the Backstreet Boys. The band accused him of exploitation, as they had only earned $300,000 since their start while Pearlman had reportedly made $10 million.
During the trial, it came to light that Pearlman had been included as a sixth member of the band. AJ McLean, featured in Dirty Pop, shared, “We were completely caught off guard by Lou’s inclusion as the sixth member of our group.”
“While you will receive your management commission, your earning potential will be equivalent to that of the five of us. This means that you will not be performing the same tasks as us.”
In 1999, *NSYNC also took legal action and sued. Although both groups were able to terminate their contracts, they were obligated to pay Pearlman millions of dollars in order to reach a settlement.
Additionally, Pearlman enlisted the services of Cheney Mason, the renowned lawyer who famously defended Casey Anthony during her murder trial, to assist with his case.
Despite Mason’s initial success, he ultimately decided to take legal action against the music mogul for failing to compensate him for his work. This ultimately served as the catalyst for Pearlman’s downfall.
The FBI was alerted to Mason’s case and subsequently conducted an investigation, revealing that Pearlman had engaged in bank fraud.
What Happened to Pearlman?
After evading authorities, Pearlman was finally apprehended in Bali, Indonesia in June 2007. He received a 25-year prison sentence and passed away at the age of 62 on August 19, 2016 while in a prison hospital.
Despite his conviction, Pearlman had previously admitted guilt to charges of conspiracy, money laundering, and making false statements while going through bankruptcy proceedings.
Tourists spotted Pearlman in Bali and alerted the authorities
Due to the outcome of the case, Pearlman and his businesses were pushed into bankruptcy without their consent, leaving numerous individuals who had invested their entire savings with no return on their investment.
Netflix reports that, to this day, over $400 million from Pearlman’s Ponzi scheme has yet to be recovered.
Despite being eligible for parole in 2029, Pearlman suffered a stroke in prison in 2010, during which it was discovered that he had an infection on his heart valve. In an effort to address this issue, he consented to enter a voluntary coma and undergo an operation to replace the valve. However, he ultimately passed away.
“Watch Dirty Pop: The Boy Band Scam on Netflix today. To learn more about the Backstreet Boys, discover the truth behind Fallen Idols and the struggles of the Carter family. And for those interested in true crime, don’t miss the new Andrew Tate documentary and the story of Phil Spector.”
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