Business: Pearlman's palace finds buyer for $7.1-million

The Windermere mansion where Lou Pearlman and his boy bands relaxed away from the spotlight is about to get a new owner.

Orlando plastic surgeon John Choi has a deal to buy the property for $7.1-million from bankruptcy trustee Soneet Kapila. Originally listed for $8.5-million, the price had been reduced to $7.9-million. The transaction still must be approved by the court.

The two-story home, dubbed "Chaine Du Lac," has 12,000 square feet and a boat dock on Lake Butler. The amenities include a pool and hot tub, sauna, steam room and media room. A guest house and vacant lot next door are part of the package.

Most of the furnishings were sold Saturday in a bankruptcy auction that brought in about $280,000 before expenses. The priciest purchase was $10,340 for Pearlman's golf cart, designed to resemble a Cadillac Escalade. His Baldwin baby grand player piano brought $3,850.

Pearlman had reams of memorabilia from the Backstreet Boys, *NSYNC and other boy bands he created, as well as Star Wars and other entertainment and sports collectibles. A statue of Anakin Skywalker, a character in the Star Wars movies, sold for $1,100.

Kapila said about 400 people attended the Orlando auction, which went on for more than nine hours. An additional 178 bidders participated online from around the world.

The sales won't go far toward reducing Pearlman's debts of more than $400-million. Bank of America has a first mortgage that gives it first dibs on proceeds from sales of the home. The bank's share is expected to be close to $6-million.

A bankruptcy judge will decide who gets the rest. Claimants include First International Bank and Trust, which has an $8.4-million second mortgage secured by the vacant lot.

Pearlman is in the Orange County Jail awaiting trial on federal bank fraud charges.

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Comments on this article

by Marissa	03/04/08 10:03 PM
What is wrong with you people who are blaming the investors? His companies DID have good reputations for over 25 years!! the docs were as real as could be and said FDIC insured. How dare you say anyone deserves to get their life savings stolen. sick

by conrad hanson	09/06/07 03:19 PM
before I retired I had a small business from time to time I lose money on a deal the next ten deals I would make it back just like any business including banks.I no longer have any way to make up my loses.

by conrad	09/04/07 09:54 AM
To Jay the banks did the same thing as I did we saw FDIC insurance and depened on the attorney general to do his job.

by conrad hanson	08/31/07 09:49 AM
This whole mess never would have happend if the attorney generals office was on the ball.

by Joe	08/29/07 06:34 PM
Hey S, people are willing to pay the plastic surgeon what he charges. 99% of what plastic surgeons do are not covered by insurance and are paid for with cash by the patient. I rather see an MD make the $ instead of an idiot athlete.

by Holly	08/29/07 02:27 PM
A lession in what not to do!

by Matt	08/29/07 11:59 AM
S....it sounds like to me that you need some plastic surgery done!!!

by trevor	08/29/07 11:19 AM
cool

by S	08/28/07 07:59 PM
A PLASTIC SURGEON..can afford a $7 milling SEVEN MILLION!!!! dollar home!!??? Does that tell you something? I know people work to make money......but THAT is overkill. Obviously he is charging WAY to much money of his patients. DISGUSTING!

by sue	08/28/07 12:49 PM
I have sympathy for the people who were scammed by Pearlman but come on. Haven't you ever heard of secured property? Also, do you really think banks don't routinely loan amts much higher than this? How do you think the economy works?

by Randy	08/28/07 12:34 PM
To the posters below, have you ever heard the say, "If it sounds too good to be true, it probably is?"

by alek	08/28/07 12:20 PM
nice car

by tom	08/28/07 12:20 PM
that stinks he deserves to lose the money

by Sabrina	08/28/07 10:56 AM
You want the other innocent Bank of America customers to eat the costs of this bad investment so you can get your money back first? No, I don't think so...if you were naive enough to fall for this snake oil salesmen, you deserve what you get!

by WhatNerve	08/28/07 10:33 AM
This is a hard lesson for individual investors, but the banks have signed paper contracts saying they get paid first in event of default. If you have no such piece of paper, you are an unsecured creditor. You will get nothing, end of story.

by Lois	08/28/07 10:20 AM
To the Marvi and Ruth, the bank should not be made to pay for your bad judgment about your retirement money. If you invested with a reputable company you would not be in this mess. As the saying goes if it sounds to good to be ture it usually is.

by Bidder 119	08/28/07 10:15 AM
The only people that will see money from this sale will be Kapila and the Banks. However to correct an error, The aircraft parts sold for $30,000 to another bidder. So the Golf Cart was # 2. I bought his clothes for $6,000.00

by Jeff	08/28/07 09:19 AM
This is America, folks. Free enterpise. The banks loan money by securing property as collateral. Retirees, who can't afford to lose their life savings, should not take risks. Stick with t-bills and CD's. Accept responsibility for your decisions.

by Jay	08/28/07 08:51 AM
Why do these banks loan so much money to people like this. Now we all have to pay more in atm fees and checking fees to make up for there poor judgement.

by K	08/28/07 08:40 AM
Bankruptcy is unfortunate for those who lost their money to this swindler and although Bank probably has secured interest in $$, it should show some compassion to those swindled!

by Marvin	08/28/07 07:59 AM
The retired person that has invested their life savings in this investment should be paid before the banks that showed poor judgment to loan so much money to any individual. This is all wew have; and it was not insured, as promised to us.

by Ruth	08/28/07 07:56 AM
It seems that any bank that loans that kind of money to any person, is using bad business. We, the little retired person, who have small retirements, and have invested in this man's scheme, should be repaid first. The bank can pay for bad business

Pearlman's palace finds buyer for $7.1-million

Bank of America has first dibs on proceeds.