Judge sends Lou Pearlman off to prison; orders restitution without interest

U.S. District Judge G. Kendall Sharp ordered Lou Pearlman off to federal prison Wednesday, but declined to add interest to the restitution order against him. The judge said he's only ordering repayment of principal now and will hold open the question of interest until after the principal is paid. Don't hold your breath waiting for that to happen.

Chief Assistant U.S. Attorney Roger Handberg had asked for $424.4-million in restitution, including the interest posted to investors' accounts. Defense lawyer Fletcher Peacock filed this objection, saying interest should not be included. The principal amounts listed in Handberg's order were $139.8-million for EISA investors, $103.9-million for stock inestors and $126.7-million for banks. Remember that the judge previously ordered that investors would be paid ahead of banks--to the extent anyone gets paid. Here's the official note regarding today's proceedings and the report from the Orlando Sentinel and the one from WFTV. More reports: Reuters, Associated Press.

I did not attend today's hearing. However, one of our MoneyTalk readers who wishes to remain anonymous reported that 34 people were in the audience and that Lou appeared wearing a 5X shirt. Here's some of what else was reported to me:

Lou was fidgeting during the whole thing and was constantly rubbing his eyes. I couldn't tell if he was crying. The judge then asked the prosecutor how much money was recovered since sentencing. The prosecutor said 'zero.' The judge said all they have gotten from Lou is a smirk and they should worry about the principal first and he would rule on interest after the principal was paid. The prosecutor then defended Lou and said that he has been helpful in locating money in his various businesses and overseas and has been meeting with the bankruptcy people. The judge then agreed to remove the people from the list who made money. The judge then sent Lou to the federal prison instead of the Orange County Jail.

As Lou left, he looked back with no expression.

Comments

Yahoo page story, pretty sure that was the source.

true

In the AP report it says "He's been allowed to manage — at arm's length — the few remaining music acts he still has." but I cannot find this anywhere else. Good joke though, at arm's length, haha. But seriously, true or false?

Can you Imagine having all the deleted posts back now? The ex-employee was my favorite. That person was straight up with info.

You may say your sentiments even if I don't agree with you or you with me. That is the foundation of this country, it transcends into all areas of life. Religion, politics, education, available reading, internet access, arts, etc.

The Supreme Court is the most powerful entity of our Government spot on...

12:43 and they do it for the ingrates just like you?

In economics it is a fact.

12:43 I don't watch TV I read. Yes my Father served in the Army, Uncle Navy and my nephew just got back from Iraq 4 months ago and he brought all his men home safely as well. He was a warded the Bronze Star.
As far as economics and the economy it may be to stark for you? It is what it is.

2:57 It's unfortunate you live in a country in the 1950's

2:57- Let me get this straight, all the American KIDS that are being killed in Afghanistan and Iraq is good for the economy? Our children and grand children? You obviously don't know any one or have any one over there. But im sure their parents and grandparents share your assessment of the economy. People don't fly because this war has slightly increased the price of gas, but were safe if we do 2:57. Take the cob webs off the TV. Try and forget last century and concentrate
on this one.

LOUIS J PEARLMAN
Register No. 02775-093
Projected Release Date: 03-24-2029

(He'll be 74)

from: http://www.bop.gov/iloc2/LocateInmate.jsp

He should work as an accountant

Big Pop is going to be getting a new job soon. He's joined the Bureau of Prisons where everyone works! I think he'd be good as a dry cleaner pressing shirts, like his father.

3:43 Please educate yourself on a subject before you speak. You waste the time of all when you don't.

I see complete and total emptiness, nothing there?

2:57, I see a ring in your nose(with a rope attached) and blinders on your eyes, lead by blind faith.

Well lets see since 9-11 no attacks have happened on our soil. Our children and grandchildren are safe. When you go to sleep at night there are always people looking out for your safety. When we fly in a plane you are more secure. That doesn't just happen by accident after thousands were killed on our own dirt. Not to mention our wonderful first responders and the fantastic job they did. It is unfortunate that you live in a country you do not appreciate?

I can't believe I have to educate you on this but here goes in economics, war in the long run is always good for our economy, because we mostly rebuild the country of destruction. It's American services and business that we do this with. Do you understand. This rebuilding helps our economy.

...other than bush...

Bob may see things a bit distorted, with good reason after what he has been through! Anyone who believes we are at war to protect our "FREEDOM" is a bit disillusioned them selves. How does a war started by false rumors against the wrong enemy, on the other side of the world, causing devastating ripple effects in OUR ECONOMY help any American?

Bob, a fascist regime may be best for you?

Bob, My Country makes me so proud, did you know at this very moment people are sacrificing their lives as well as family members for the freedoms we enjoy everyday. I thank the people who have sacrificed and gave, so that we can enjoy our freedoms that we so clearly take for granted. Thank a Vet man..... D

Thank you 6:47, you are correct.

Bob I am one of you and I wish you the very best, both us of have been through the exact same thing, You don't need to be ugly, your just wrong.

And it's you.

[Bob West]

I think I stepped into animal manure.

[Bob West]

To 6:30 PM, it's evident you weren't one of them.
You're the pain in the 1st's privilege.

I have to agree with you 6:30 pm. Bob has it backwards. Freedom of speech means other points of view are not feared.

Bob, men have died for this Country to preserve the freedom of speech among other things and you take it for granted.

Agreed, no one will see a nickel, ironically the banks lawyers will see to that as all assets turn into their fees. It is sad the government took the quick easy out, cleared their docket, and left regular people traumatized for life probably, to wonder. The rest of the co conspirators will do shady deals most likely, and the feds will be glad of it. There can be no way $450,000,000 just vanished, and it's ok with the feds. It stinks.

[Bob West]

2:47, I, like the real people affected by this, don't know for sure all the other peoples type of involvement in this. I was just trying to point out that some people have already taken profit from this and, at the expense of others really have no reason to seek further restitution.
Don't get me wrong, everyone that paid into this suffers. It's just the frustration of not knowing all the ways this scheme was worked that creates different visions of restitution.
My personal opinion is , that no one will see a shiny copper from all this and, "the treasure hunter and high priced crew will expense every copper they find.
Also, the first amendment blogger and others like it are making this blog uninteresting. It's also bad that the 1st makes it so easy for the idiots of this county to inconvenience the rest of us. Probably studied shifty law in prison.
I wish there had been a trial, the government really cheated us out of knowing what was involved. No public documents, no involvement of others, and no satisfaction. At least with me.
I think we needed names, numbers and all the other facts, not just a quick sweep under the rug government thing, supposedly to save us time and money.

Bob West....Not everyone invested in stock. Many simply rolled their 401 K plans not to Trans Con, but to FISERV who was to be the custodian. That carries judiciary responsibility to insure the monies are meeting the standards set forth in a IRA account. As mentioned earlier by one of you BOA was allegedly promising a rate of return based on the number of holdings Lou claimed to have in that Bank. Does not sound impossible as said documentation was presented. I know most on this site are way, way too smart to think FISERV and BOA had any responsibility to investigate these types of accounts. IRA's became virtually washed into regular monies that Lou or his cronies could withdraw at will. I do agree anyone who invested in any other type of plan; Stocks, CDs etc and paid directly paid to Trans Con is SOL.

Bob, agreed 100%! EISA should not be grouped into the entire pot of those seeking recovery. You are correct in pointing this out. How can this Judge not do the same?

[Bob West]

to 1:14 PM
If you were #2 on the "Exhibit B--Stock" Public Document 61-4, I would see why you would want stock speculators to reap their promised rewards.
#2 invested $140,000.00 & withdrew $150,000.00. Not bad in itself. But,with dividends (interest) $435,738.00 is still due as the amount of restitution.
Read the words "STOCK SPECULATOR".
Where in the world does any stock guarantee this type of return, or any return for that matter, or that it wouldn't go bust? All stocks are SPECULATIVE
EISA depositors were guaranteed a fixed rate of return that was insured by the FDIC & Lloyds etc. Putting their savings into an insured account with guaranteed interest. NO INVESTING IN SPECULATIVE STOCK.

I had a similiar meeting with Lou, got a weird vibe I will regret forever, the agent was relentless afterwards. It was quite the dog and pony show. Pearlman had this distasteful superior attitude, referred to "Lou time" being his reality. If it were not for other professional people investing I knew of, I would have said no thanks.

Any lawyers working on getting our money back?

1:17, please tell us the date of this meeting.

My conclusion is this federal Judge is protecting Charlie.

My agent took me to Lou's Orlando office where I met Lou Pearlman. He began our meeting by playing a DVD showing how he created this magnificent empire. Afterwards I asked to see any documentation that proved the security of my investment. Lou presented what appeared to be official documents from the FDIC, Lloyds, AIG, Dun and Brad and BOA documents supporting the interest rates he was offering. I asked for copies but he refused because as he stated" This is a "Friends of the family program" and as such he could not have someone who may choose to make public that it could be construed differently. I must admit he performed well, but I still felt uncomfortable which he could see, so he ends this meeting with saying" Look Charlie is going to be our next Governor and his people went through my operation with a fine tooth comb. If something had been wrong don't you think the office of the AG would have acted?" Thanks to Charlie I lost my a.... I do not need to be told I screwed up, but you can draw your own conclusions.....

Helen, anything to the reports of the Judges comments regards "interest will not be rewarded at this time because it would reward investors bad decisions"?
Are we to believe suddenly EISA folks are as or more savvy than the banks that took a bath? That is very harsh on the Judges part, it would appear.

First Ammendment Advocates

"Censorship reflects a society's lack of confidence in itself. It is a hallmark of an authoritarian regime" Supreme Court Justice Potter Stewart (1966)

If Pearlman has 5 million hidden, don't you think he would decide to keep the money and not get out of prison 5 months early. Does anyone know if he will be allowed to retrieve the stolen funds if and when he gets released?

Dianne you been watching too much CNBC

[dianne]

maybe Lou's got the money hidden in Liechtenstein at LGT bank??

The more you ingnore Charlie, the more I wonder, at first I thought you could never do anything that would hurt others. Your actions of ignoring and not even noticing that it took place has me really wondering about you.

Charlie Crist did you know that that he was a Theif or did you invest also?

Crist did you know lives were destroyed and taken?

Crist did you know that at the time you were Attorney General and Governor?

Charlie Crist did you know Fla had a huge financial ponzi scheme?

Guaranteed he has a few million stashed. It will keep him alive.

How nice the prosecutor defended Lou. Very touching. It shows either Lou is playing Hanberg, or Hanberg is scraping for evidence of anything of substance to report. Bottom line-there is no money. Co-operating? What amount of money? Please.

Let's fast forward 21 years. If Pearlman is released, is any sytem is place to moniter that he does not have access to hidden money. If he suddenly buys expensive cars and lives in mansions and travels around the world it would be obvious he is using the funds he stole.

LOUIS J PEARLMAN 02775-093 54 White M 03-24-2029 IN TRANSIT

He should serve the entire 25 year sentence. No shortening of jail sentence.

"He could also offer wages from whatever job he gets in federal prison, ranging from 12 cents an hour to $1.15 an hour for top-scale factory work."

What I would pay to watch him make license plates! woo hoo!!