Julian Benscher has a deal to take over Lou Pearlman life insurance policies

Julian Benscher, who once ran an airship business with assets he bought from Lou Pearlman and who sold Pearlman his Windermere home, has worked out a deal with trustee Soneet Kapila to buy three of Pearlman's insurance policies. The largest is a $3-million term life insurance policy that expires in 2013. The two others are $1-million (each) whole life policies. Benscher will pay the premiums, which add up to $14,185 a year. In addition, he will reimburse the trustee for premiums paid by Trans Continental after the two whole life policies were set up last year. If Pearlman dies before the term policy expires, the bankruptcy estate will get 30% of the net proceeds. On the other two policies, the bankruptcy estate will get 15%.

Benscher said he knew Pearlman had multiple life insurance policies as "key man" for various companies and security for loans. After investigating, he found most of them had lapsed, but he was able to prevent lapsing on three of them by bringing the premiums up to date. "I'm not an actuary, but I've seen fitter people than Lou," he said. " I knew there was no way the trustee would be willing to make those premium payments. I would be willing to do so and they could get some benefit." Benscher was originally the beneficiary on one of the policies as security for money Pearlman owed him, but Pearlman removed his name without telling him. The deal is subject to court approval.

Kapila also asked the court to once again extend the deadline for objecting to a discharge of debts. This extension would be for six months.

 

UPDATE:

Kapila's request for an extension has been approved.

The Orlando Sentinel reported on the insurance policies 8/21/07.

Comments

[Kim]

The one's LP told people about do not exist. The law has already proven that!

Maybe, because they did exist.

My main problem with JB is how he would talk about (confirm) LP and Trans Continental Airlines, even saying he visited their German offices which, according to recent reports, may have never existed. Why would he do that?!

[helium head]

jb's involvement with pearlman does go back many years, but how deep, who knows? he did aquire back in 1994(+/-) "airship operations, inc." which originally was a "wholly owned subsidiary" of airship international, i.e. big poppa. it became part of the "aviation support group". that's in 'black and white' in the sec reports that pearlman issued in the 90's. i always figured jb got involved (in the blimp biz) because lou borrowed from him, and then couldn't pay him back the return he (jb) desired. i hadn't wanted to mention jb back last month, when i detailed lou's later blimp ops, but by buying lou's insurance policies now, people would probably find out all that info on julian anyway. besides, someone once wrote here: "he (pearlman) got greedy young guys like julian benscher to play along"/ or something to that degree.

I Google searched Benscher and his name appears on alot of Pearlman related company documents dating as far back as 17 years ago. When I first invested in the EISA and met JB I remember Pearlman telling me he was a Trans Continental Airline's shareholder, which now appears to be a fictitious company. I also heard one of Pearlman's main cohorts now works for Benscher. Anyone checking this guy out or are we blinded by the potential of getting 30% while he takes 70?.

About 6 years ago Julian got a hole in one at the Isleworth Country Club - maybe he'll luck out again with the Fatman!

[helium head]

there must be loads of money for jb to make, if big poppa goes to the slammer in the sky. i can't understand why anyone would continue to stand with lou, unless there is more money to be made. however, julian, etc., from what i understand, have had business dealings with lou for many years. i just thought that it had ended years ago with the airship biz. (i'm not suggesting in any way that jb is wrapped up in the whole trans con mess, though.) we'll all just have to see how this thing (everything) pans out. stay tuned!

[Willie]

There used to a secret game played where you bet on when a certain celebrity would meet his demise. I think we investors should bet $500 million that LP doesn't last 5 years!!
And where are the new indictments? Anyone...

What deal did Mandy cut? Enquiring minds want to know!!!!!!!!!

What we really want to know is about the deal Mandy cut to talk, allegedly

How is Mandy these days? Does she still believe?

Thanks Les. Amazing what the state knew when, isn't it?

[Les Henderson]

Term policies have no cash value. The only way investors can benefit, without paying more themselves to keep them active, is to go along with the "Benschner Bet".

Any money paid up till now is long gone. Pearlman is swimming in the Dead Pool.

Whose money paid the premiums for these policies? Follow the money Soneet, you should be getting 100% of these policies values. Also, the state of Florida could have shut this scam down LONG before, it had the juice to do so.
It chose not to. People lose their lives over life insurance pilicies all the time, this thing stinks more each week. Get these proceeds to the investors. The state of Florida blew it, they sacrificed their "clients" for a potential conviction when they did not have to do it that way.

Ben, you completely missed John's point. He's saying it appears the State is culpable and liable. Then it wouldn't matter what $ LP had because the State, if held accountable (not likely), would have to make investors whole.

If LP dies of suicide or is killed in jail by another inmate that probably voids any life insurance payout

What age did Lou's father live to?

[Ben]

To John Leritz

no matter what you read and hear, I still feel we are screwed all the way. With Lou having a possibility of getting 100 to 200 years, do you think he will talk if they reduce his sentince to 50-100 year? I don't, I think what ever money he had, is set up in a trust to his good boy friends and he will never tell anyone where, if any, money he has left. We all might as well face the facts, our future is a tax deduction of $3,000 per year for the rest of our lives

[John Leritz]

Helen--just wanted to say "hello" and to thank you for working "your tail off" and keeping us up to date. I don't know why,but I have a really good intuitive "gut" feeling that Big Lou didn't cover his tracks as well as most people surmise, and that some really good "Nancy Drew" (a 1930's fictional amateur sleuth) surprises will begin popping to the surface and shock everyone as to Lou's lack of genuine foresight in the handling of his stash..Much of his "luck" in the past 30 years has been thru his deception and the uncanny, poor investigative approaches from so many leaders,agencies,etc at every level of government.It doesn't seem possible,with so many,many chances to get exposed, but Lou's open flamboyancy seems to have caught everyone off-guard and according to CFO Alex Sink in your column last Sunday (8-12-07) admits to Florida's faults in this serious matter:
CFO Alex Sink taking a look at Trans Continental situation
The Trans Continental investment scam revealed a serious weakness in the way Florida regulates insurance agents, Chief Financial Officer Alex Sink said Friday."Our laws are written as if we're back in the old days when insurance agents sold insurance and brokers sold securities," she said. "They're all basically financial services providers."Sink heads the Department of Financial Services, which regulates insurance agents, and is one of four Cabinet members with jurisdiction over the Office of Financial Regulation, which regulates brokers and securities sales.Sink will review oversight issues as she works on next spring's legislative proposals. "My role and mission is to safeguard our citizens' money and their assets," she said. "Clearly we've got a situation that's been exposed in a very unfortunate way in which our citizens' assets were not protected. It's incumbent upon all of us to go back and try to figure out what went wrong, why it went wrong and is there anything we could have done as a governmental authority to have avoided it."

Even she admits that this Pearlman fiasco was directly caused by Florida's antiquated laws and that "my role and mission is to safeguard our citizens money and their assets" (as CFO of Florida). In my opinion,this is an absolutely open and full confession as to Florida's liability to the investors snared by Lou Pearlman and Trans Continental Airline Inc, and Florida's obligatory and culpable responsibility to return these assets,in full, to its scammed victims--accomplished by Pearlman with the State of Florida's blessing.

John Leritz Clearwater

Anonymous, if you've ever met JB, he definitely qualifies as "not nice people."

[anonymous]

Lovely

so now we someone that will benefit financially if Pearlman does not live past 2013.

this seems like the kind of business "not nice people" should be in...especially if they control the end result....

from the jail people to Pearlman:

"Hi Lou, it seems that someone if going to make a lot of money if you don't live past 2013...[smile]"

[Francis Xavier Torelli]

This means that Julian is withdrawing from his previous situation with Lou.

A very-frustrated-Lou could not be reached for comment.

But hasn't Julian heard? Lou is doing 300 situps a day!

hmm..then again maybe that's what gave him this idea!