Michael Crudele was unaware of any fraud, his lawyer says

"Michael is adamant that he was unaware this was a fraud," his Tampa attorney, James Felman, said today. "He has taken no steps to hide any of his assets and never would."

Crudele, who handled marketing for Lou Pearlman's Ponzi scheme, has been cooperating with bankruptcy trustee Soneet Kapila and will continue to do so, Felman said. He said Crudele has agreed to the continuation of a restraining order preventing him from disposing of certain assets, although it is more narrow than the one Kapila requested last week based on this motion.

Felman says the transfers Kapila cites in his motion came from Crudele's Trans Continental accounts, primarily money he had invested in Trans Continental stock. He said Crudele set up EISA accounts for his children, which were used to purchase Florida Prepaid College Funds. "He put hundreds of thousands back into the company and made no effort to withdraw it," Felman said. He said that when the company collapsed, Crudele's account was supposed to be worth $2.8-million.

Comments

[Lester]

lives in an igloo near the polar bears but yet knows all. is he like the oracle of delphi--but wasn't they all women----oh--it's les--never mind--i get it now.

[Dr. Evil]

i will hold the world ransom for 1 miiilll, um i will hold the world ransom for 7 m=llion dollars

[if i had a million for every million i had]

i still couldn't pull the rug over ye eyes like fat lou

[7 seven million]

seven million? and where did it go??????????????????????????????????????????????????????????????????????????????????????????????????

Les, stop crying to Helen about unflattering post, you earned them.

It must have been a disappointment that his hero Lou never even said thanks to Alec for getting him off the hook, but calling Difrawi a Pearlman victim? Don't make me laugh.

[jeff]

To 5:19am,

No one really knows what Alec Difrawi did or did not know, but the modeling/Pearlman transaction happened in 2002. Pearlman was widely considered a top businessman and a billionaire at the time. 60 Minutes would do a 20 minute flattering piece on him that year, the city would give him a key to the city, and Orlando would hand him millions to clean up Church St. Station.

The fact that he had a couple of boy bands suing him was no big deal. When asked about the lawsuits Pearlman used to tell the following story>

Berry Gordy, the founder of MoTown records was approaching a young singer to sign. The young artist was reluctant and said “Mr Gordy, I’ve done some research. Michael Jackson sued you, Dianna Ross sued you, and James Brown sued you. Why should I sign with you after all that?”

To that Berry calmy smiled and responded, “Think of who you names Michael Jackson, Dianna Ross, and James Brown. Son maybe someday you will be lucky enough to sue me.”

The point is Pearlman appeared very legitimate which is why Difrawi, Banks, Investors, and politicians all fell for his scams.

[jeff]

To 5:00am,

If you are referring to me I am not trying to stop Les from putting his book online. I am simply predicting he won’t. The whole book makes no mention of the stock fraud, the ponzi scheme, or the employee savings program.

While investigation Pearlman and his companies for three years Les missed the entire fraud and focused on the modeling company which has been cleared by the state of Florida and the feds (trustee).

As a self proclaimed investigative reported it is probably bit embarrassing to investigate the person running the biggest fraud in the history of the state and not even get a whiff of it.

Ayman Difrawi:

Why don't you write a book about your amazing modeling business and use the profits to pay the $2,300,000 restitution you owe?

Include a chapter on how Pearlman scammed you. Why did you associate with him when everyone was saying he was a fraud? Why did you put your reputation on the line?

Where is that book you said you were writing? Let's see how many copies you can sell on Amazon.com.

Mrs. Huntley:

Forgot to include the source of the new article posted below about these kids who want Pearlman's help.

http://www.wesh.com/entertainment/16197268/detail.html

I didn't see anything on your blog here about it.

Did you see it?

It sounds like AD or his representatives are trying to stop Les Henderson from putting the chapters on Lou Pearlman online.

Les, I say go for it. There is no other book online which exposes Pearlman. The closest thing is the Vanity Fair article.

Putting it online fits what's going on here. Alan Gross and Helen Huntley just put his letters and photographs online which expose him and show what he's really like.

If you have any letters or pictures to go with your chapters, please put them online, too.

Helen, could you host Les's chapters on LP here on your blog like you did Alan's letters and photo?

Helen,

There's a whole bunch of comments/insults below that violate this blog's rules and pollute this thread. It's gibberish and offtopic. Please delete.

Local Band Hopes To Put Pearlman To Work

ORLANDO, Fla. -- A local band is reaching out to Lou Pearlman, jailed after pleading guilty to defrauding investors out of millions of dollars.

Pearlman guided the Backstreet Boys and 'N Sync to stardom, and even though he's in jail, he could find himself managing another band.

Biteboy is reaching out to the former music mogul to help launch their career. They said it doesn't matter that Pearlman pleaded guilty to defrauding banks and investors out of $300 million.

They said he has knowledge of the music industry like no one else.

"He's sold more CDs and brought more people to concerts than anybody in the history of the world. I don't want to see that knowledge lost. I want it. They want it," Biteboy manager Rick Namey said.

"We're talking about the Backstreet Boys ... They made more money than most acts right now working twice as hard," Biteboy lead singer Rick Namey Jr. said.

The band plans to meet with Pearlman in jail next week to work out a deal.

The band said since he can't hear their CD in jail, they're hoping to perform a live concert for the inmates.

What part?

WHAT THE HE-- ARE YOU PEOPLE TALKING ABOUT

In a world of similarities, the exact opposite of LH.

You tell me what does that make AD?

I don't know what AD is but I know he does not have such a great reputation here on this blog.

So if you do not believe that Jeff is AD and that he's one of the good guys, what does that make AD?

Les, I can't imagine anyone wanting to be you.

Jeff, I do not for a moment believe you are AD. I think you are one of the good guys and am glad you are here.

[A]

Wrong idea: Convicted child molester, convicted thief,
ex-and soon to be current convict. That kind of wrong idea?

[A]

10:51: I mean A-Hole. I am a mind reader. My mind says you are AD. I must have missed DAHHHHHHH in websters. I am toooo smart to molest little kids and have relations with fat thieves. I hear the ky in jail is pretty cheap. Can you verify since you last jail time?

[jeff]

I do not believe I was bashing Les. I was merely pointing out information which is verifiable facts.

To Les,

I will try to resist, but you know how irresistible you are so it may be difficult :o)

Sounds like a reasonable explanation "jeff", but I don't buy this being "absentminded". I cannot help noticing that your reasoning to bash Henderson's findings sounds a lot like AD's to me, too.

[Les Henderson]

Clearly Jeff really wants to be Les on a subconscious level.

All of his insults must just mask a true love and respect for my writing skills.

I'm glad to hear that he is following my sales figures so closely, but hope that he is not fixating on a picture of me tacked on his bedroom wall.

Don't let adoration become a fixation, please.

[jeff]

I was writing the post which had information about Les and absentmindedly typed in Les instead of jeff. Jeff is not my real name, just a alias I am using to post on this site.

I prefer not to use my real name because it appears anyone using their real name get bashed eventually or are accused of seeking to publicize themselves.

Previous post was by jeff not Les

Posted by: jeff | May 13, 2008 at 07:17 AM
==============

This is getting a bit confusing. If this is correct (only Helen may know), are you more often in the habit undersigning messages with "Les"? Why?

Jeff,
You are GREAT, Facts, proof, to the point, articulate, well versed, knowledgable. Thank you for being here.

[jeff]

Previous post was by jeff not Les

[Les]

Incidentally Les’ “book”, sells les than 2 copies per month according to Amazon. In 5 years he has not been able to sell 100 copies of the book.

Les claims he spent three years working on the book. It seems unlikely he will try his hand at writing another book.

[jeff]

Ad refers to Alec Difrawi. Alec and Les have a very public feud online and in court.

I wouldn’t hold your breath waiting for Les to post information in his book about Pearlman. After investigating Pearlman for years Les had no clue about the EISA of the Stock Fraud. Les’ book cited the modeling company that Lou bought from Alec Difrawi as the scam.

Since then the state of Florida cleared the modeling company of any wrongdoing and the trustee declared the modeling company the only legitimate business in the Lou Empire (it was sold by the trustee to a third party for $250,000).

So posting his findings would make Les look a bit foolish, as the premise for his whole book was flawed.

Note: It is Les’ current position that the modeling company was indeed a scam and that local, state, and federal authorities were part of a conspiracy to cover the whole thing up.

> Les is your next book on AD??

Who is AD?

Mr. Henderson,

If you're not doing a new book on Pearlman, can you at least put the chapters on him from your other book online? You could do that on the day of his sentencing. Or the day he goes to prison.

7:41 NO! but you're too stupid to
know when to use "too and to" you got them backwards. DAHHHHHHHHHHHHHHH!

7:41 have you ever been in court? The
last time I checked "MIND READING" was
not evidence. Please try to be mature
and not call people names it can give
people the wrong idea about you.

If a job offer was presented to Big Pop for $300M based on record sales of a new boy band would the Judge let him stay out of jail?

Les is your next book on AD??

[Les Henderson]

Unfortunately, I shall be too busy collecting judgments obtained from my lawsuit against Pearlman's associates to have time to devote to another book about the Big BoPper.

Although I shall retain rights to the draft title of my telling of the Ponzi scheme affair, it is highly unlikely that I shall bother to publish a book on the topic.

I wish those who do all the best. I may even go to see one of the movies, provided that they screen outside of Orlando and Tampa.

Is Les going on a book tour???

Please not another commercial for these people to get rich while we live with pain every day.

Helen,

I saw something online about a new book about Lou Pearlman by Les Henderson called "Fraud Flies First Class: Lou Pearlman’s Perfect Ponzi."

Since you already noted the new movie on Pearlman's Ponzi scheme, can you give us more information about this Henderson book, too?

Could you also give us an update on any other books about Pearlman in the works (I forget whom you said is writing one), and the latest with the Pearlman movie, too?

Thanks.

6:22 a-hole, do you also want proof the sky is blue, and the grass is green? Are you saying that crud was too stupid to know? Do you actually believe that for 10+ years he believed it was FDIC insured? The fact is there was nothing to insure, there is and never was an EISA. How can someone with all that insider info not know it didn't exist? Back to my first question, are you saying he was to stupid too understand what was going on?

Ha! Diane, would you please prove what
you said!

[dianne]

I spoke with Crudele prior to investing in EISA and he swore that these accts.were FDIC insured.He most certainly knew this was fraud......

$10.00-fraudulent conveyance-No inside deal here-Same as giving the crums 1 million+ to hold until everything comes to a head.

Worth $2.8 when EISA collapsed?
I would use the word busted. With the phony statements Pearlman and his cronies generated, Crudele could claim any number.

Who are the Crums?

Which one?

Same thing one of his notorious agents did.

Warranty Deed Lot 9 Brandon Woods Parcel Id u-36-29-20-260 000000-00009.0 sold 2 day of April to a Jeffrey and Jennifer Crum for $10.00.

This looks like the house they currently live in. I see no indication of a $10.00 sale.

Helen you should remove this
how would you like it?

So will the truth come out now why boy band member Akaika from Making the Band quit.

Who did he sell his house to for $10.00. The address for the public records would be just as helpful.

5:15 pm, likely because it was in a trust or LLC or some instrument not easily penetrated, that requires no disclosure. Very common when woried about losing things.

I would love to see the deposit slips showing his orginal investment.

I want to no why he sold his old house for 10 dollars.

Why are there no Hurricane Pearlman relief efforts? Isn't it funny this tragedy and others similiar to it have little resonance with the general public? That if a person wants to recover they have to bare the burden themselves despite their lives being destroyed? Such is the way of white collar financial crime against the public, it just does not matter. Very weird.

KC all we know is we are angry that our money is gone and want to know the truth.

KC you sound young, worried and confused. Be patient let the truth come out.

[A]

Ok.. Let me get this straight.. He Used Trans-Con's ..or Lou's Money (Or.. What he Thought and Told was Lou's Money)Which was actually Investment Money to Make Himself Money.? And made a tidy Profit..

So Now everyone that "Invested" and were hoping to make a Fast Buck Regardless of where the return came from as long as they made Money are now upset Because they lost and he gained??

From what all I've Read and Heard - He had no knowledge of where the Funds came from etc.. All his job was to do was Invest and get returns on what he Thought and was told was Lou's Money.. And, He is fully cooperating with everyone.. But now Some People want to label him as a crook? << I'm Confused

Posted by: KC | May 08, 2008 at 09:45 AM

KC, you really are confused, sounds like the fish. What are you trying to painfully say? The money came from investors/with their names on checks(not lou's name). And exactly what was he investing the money in besides his accounts and college funds? What choice does this "LIFETIME CRIMINAL"(check his history) have but to cooperate? He was already labeled a crook long before this mess! Stick with the band.

KC, innocent until proven guilty is the game he's playing, duh. Who wants to sit in prison? Since when is ignorance an excuse for anything? Crudele, or Crud for short, and all his agents had fiduciary dutys to know they were NOT crooks.

Kc, Don't worry they label everyone a crook.

I'm going with crook.

[KC]

Ok.. Let me get this straight.. He Used Trans-Con's ..or Lou's Money (Or.. What he Thought and Told was Lou's Money)Which was actually Investment Money to Make Himself Money.? And made a tidy Profit..

So Now everyone that "Invested" and were hoping to make a Fast Buck Regardless of where the return came from as long as they made Money are now upset Because they lost and he gained??

From what all I've Read and Heard - He had no knowledge of where the Funds came from etc.. All his job was to do was Invest and get returns on what he Thought and was told was Lou's Money.. And, He is fully cooperating with everyone.. But now Some People want to label him as a crook? << I'm Confused

Once it becomes known how many people knew EISA stunk, it's a new ballgame.

Crudele was a key insider, cut the BS!

5:01 am. That's pretty early for a post. And why so emotional? Is something keeping you up at night?

6:55 once again you are talking out of your A- hole where's your proof the 2.8 came from comm.? It "appears"that you still beat your wife?

To those that believe him to be ignorant of the facts... There's this great investment plan we should talk about.... oh wait... we've already been down that road...He's about as innocent as Pearlman and in my opinion should be sitting in the big house with Lou (and I'm not talking Windemere!)

At the least, he is negligent. He should have known certain things.He should be sued in civil court.

Just because he ultimately lost the money that he had invested,doesn't mean he didn't know that he profited all along from what was a scam, unethical, illegal, fraudulent.Maybe he believed that he'd come out ahead. Even if Lou lied to him or he was unaware of the eventual outcome, doesn't mean he was unaware of the process and the goings on. Don't all crooks think they have it figured out until it all unravels and they get caught?

Paid handsomely not to be aware, no doubt. It's a nice defense but completely dismisses his relationship to the banks and Lou, sharing Lous office space, OFR and others inquiries regards selling an unregistered security, ect. ect. What's he going to do, bend over and admit everything? Who pays for this fabulous defense? Crudele knew he was paid alot for what he did, and he paid his agents alot, dosn't add up Mikey.

The problem with Crudele is he appears to have MADE the $2.8 million from commissions peddling the EISA. He did not appear to have that kind of money before he met Pearlman. That's different from people who may have been involved in business with Pearlman but who invested their OWN savings into the EISA. Remember, Pearlman solicited anyone around him including friends and family, and that certainly included business associates.

4:59 You're a jerk I could see a couple
of 1000 but 2.8 mil.? I believe him.

That is what all of Lou's Boys are saying. "I lost money also so that proves that I didn't know it was a scam"

Seize his assets

How does the man in charge of EISA not know it doesn't exist? UNAWARE?

2.8 million. 10 million hidden, i would take that deal.

BULLLLLLLLLLLLLLLL SHI--------------