Fill out this form to email this article to a friend
State's case against Pearlman shrinks
By Helen Huntley, Times Personal Finance Editor
Published April 26, 2007
The state's case against Trans Continental Airlines and its alleged $317-million Ponzi scheme just got a little smaller and eventually could be dropped now that federal authorities are leading the investigation. The Office of Financial Regulation asked to drop Robert Fischetti, Michael Crudele, Kristin Finger and Aegis Consulting Inc. as defendants in the case filed against music producer Lou Pearlman and his associates last December. The state says it is assisting federal law enforcement in investigating the case and "does not wish to compromise ... the ongoing federal investigation by subjecting otherwise confidential information to the discovery process" that would be available to defendants in the state case. Ultimately, the case appears likely to end up in the hands of federal prosecutors and the bankruptcy court. The state accused Pearlman, the man behind popular boy bands 'N Sync and the Backstreet Boys, of running a massive Ponzi scheme. Investors and banks say he owes them nearly $500-million. No criminal charges have been filed.
[Last modified April 25, 2007, 22:55:20]
Share your thoughts on this story
Comments on this article
|
by Mike
|
04/26/07 08:36 PM
|
|
Walt when did you get yours back?
|
|
by Walt
|
04/26/07 11:31 AM
|
|
I got my investment back after trying for a long time.
Representatives Bilirakas' may have helped
|
|
by Amazed
|
04/26/07 05:25 AM
|
|
What are they waiting for? Criminal charges should have been filed already. Who is Pearlman paying off this time?
|
|
News
Fifty years ago, they were screwed-up kids sent to the Florida School for Boys to be straightened out. But now they are screwed-up men, scarred by the whippings they endured. Read the story and see a video and portrait gallery.
Print
Email story
Comment
Email editor
