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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:00,000 --> 00:00:04,162 WWW.MY-SUBS.NET 1 00:00:12,846 --> 00:00:16,766 {n8}Louis, this is your Uncle Jack and your Aunt Rose's son, Art Garfunkel, 2 00:00:16,850 --> 00:00:20,979 {n8}and I'm talking to you through my camera in this hotel room 3 00:00:21,062 --> 00:00:23,690 {n8}to make a little tape for your 50th birthday 4 00:00:23,773 --> 00:00:28,194 {n8}because our Garfunkel family has always loved you 5 00:00:28,278 --> 00:00:31,740 {n8}and I especially, Louis. So happy birthday, Lou. 6 00:00:33,491 --> 00:00:35,931 {n8}All right, everybody knows it's Saturday night, right? 7 00:00:36,661 --> 00:00:39,080 {n8}All right, it's time to party. Here we go! Whoo! 8 00:00:40,749 --> 00:00:41,666 {n8}Hands up in the air. 9 00:00:41,750 --> 00:00:43,835 {n8}I know you're eating, but come on, it's time to clap. 10 00:00:44,919 --> 00:00:48,256 Every year, Lou had a lavish birthday party. 11 00:00:49,090 --> 00:00:52,302 {n8}His 50th was unbelievable. 12 00:00:53,219 --> 00:00:57,474 {n8}There were powerful politicians. There were music people. 13 00:00:57,557 --> 00:00:59,957 Hold on, everybody. Hulk Hogan's got him in a headlock. 14 00:01:00,727 --> 00:01:03,813 They wanted the glitz and glamour that Lou brought. 15 00:01:05,273 --> 00:01:10,153 He created musicians who became extremely famous, 16 00:01:10,236 --> 00:01:11,821 and everybody wanted a piece. 17 00:01:12,781 --> 00:01:13,948 Hello, everybody. 18 00:01:14,032 --> 00:01:17,285 My name is Howie D from the Backstreet Boys, 19 00:01:18,036 --> 00:01:22,749 and, uh, I just wanted to come out and say a couple of words to Lou, 20 00:01:23,458 --> 00:01:27,087 who, uh, as I know, is, uh, Big Poppa. 21 00:01:28,088 --> 00:01:30,340 I remember feeling a little weird 22 00:01:30,423 --> 00:01:33,426 because I kept on going to the Trans Continental parties. 23 00:01:34,052 --> 00:01:36,179 The guys didn't really agree with me. 24 00:01:37,430 --> 00:01:40,892 But I was like, "This is Lou. This is the guy that gave us our dream." 25 00:01:41,559 --> 00:01:43,853 You've been a great inspiration, my mentor in life. 26 00:01:44,562 --> 00:01:46,815 And God bless you. Happy 50th birthday, buddy. 27 00:01:48,733 --> 00:01:50,902 Lou was a very, very smart man. 28 00:01:51,986 --> 00:01:56,533 And he had enough stories, enough knowledge, enough energy to himself 29 00:01:57,033 --> 00:01:59,244 that you would believe whatever he said. 30 00:02:01,579 --> 00:02:03,373 Betrayal is such a hard word. 31 00:02:05,416 --> 00:02:07,335 For many, many years, I didn't see it. 32 00:02:07,836 --> 00:02:10,505 Enjoy the party. Thank you for coming. Thank you. 33 00:02:22,517 --> 00:02:25,079 What do you think about the hysteria of boy bands? 34 00:02:25,103 --> 00:02:27,981 That there are so many girls screaming? 35 00:02:28,064 --> 00:02:31,401 People tell me, you know, that boy bands are over. 36 00:02:31,484 --> 00:02:33,778 And I know boy bands are not over 37 00:02:33,862 --> 00:02:37,657 because boy bands are over when God stops making little girls. 38 00:02:37,740 --> 00:02:39,367 Until then, it's working. 39 00:02:39,450 --> 00:02:41,170 You ever heard him say that? 40 00:02:41,244 --> 00:02:42,484 Have I ever heard him say that? 41 00:02:44,455 --> 00:02:45,957 Too many times to count. 42 00:02:47,208 --> 00:02:49,878 But at that time, the world was changing. 43 00:02:49,961 --> 00:02:52,005 The pop world was changing. Music was changing. 44 00:02:52,088 --> 00:02:55,216 And everyone was pretty much, like, over boy bands. 45 00:02:55,717 --> 00:02:58,928 Didn't realize Chris Kirkpatrick rhymed with "get your ass kicked." 46 00:02:59,012 --> 00:03:00,972 ♪ Anybody who's talking this and that ♪ 47 00:03:01,055 --> 00:03:03,349 ♪ Chris Kirkpatrick You can get your ass kicked... ♪ 48 00:03:03,433 --> 00:03:08,396 Like, we have Eminem. We have Kid Rock. Diddy. No more boy bands, please. 49 00:03:12,317 --> 00:03:13,484 Izzy, you're crazy. 50 00:03:13,985 --> 00:03:16,029 Even though people had moved on, 51 00:03:16,112 --> 00:03:21,868 in 2005, Lou made a television show in Europe called Big in America. 52 00:03:21,951 --> 00:03:24,829 {n8}♪ Big in America ♪ 53 00:03:25,538 --> 00:03:29,083 {n8}♪ This is a chance to become a star ♪ 54 00:03:29,751 --> 00:03:32,670 I played the role of a tour manager for a few episodes. 55 00:03:33,254 --> 00:03:36,549 The following two days you'll be shooting the video at Universal Studios. 56 00:03:36,633 --> 00:03:40,428 Following that, you're going to New York for press, live radio, PR meetings. 57 00:03:40,511 --> 00:03:43,348 The day after that you're performing live for 2,000 people. 58 00:03:43,431 --> 00:03:44,265 Two weeks. 59 00:03:44,349 --> 00:03:48,895 The premise of the show was that this band was big in America. 60 00:03:48,978 --> 00:03:55,109 ♪ There is so much a man can tell you So much he can say ♪ 61 00:03:55,193 --> 00:04:01,658 ♪ You remain my power, My pleasure, my pain ♪ 62 00:04:01,741 --> 00:04:03,284 ♪ Baby ♪ 63 00:04:04,702 --> 00:04:08,122 Turns out they'd never even played a show or sold a record or anything in America. 64 00:04:08,206 --> 00:04:15,171 ♪ Baby, I compare you to A kiss from a rose on the gray ♪ 65 00:04:15,255 --> 00:04:17,590 But, hey, it worked for him. 66 00:04:17,674 --> 00:04:19,467 - Thank you. - Thank you. 67 00:04:19,550 --> 00:04:20,551 All right. 68 00:04:21,135 --> 00:04:24,639 He titled himself as the Big Poppa of Natural. 69 00:04:24,722 --> 00:04:25,556 Mm-hmm. 70 00:04:25,640 --> 00:04:27,600 Is he the Big Poppa of you? 71 00:04:27,684 --> 00:04:30,103 Yeah. I mean, he's... he's definitely a father figure. 72 00:04:31,187 --> 00:04:33,231 He's an inspiration because no matter what, 73 00:04:33,314 --> 00:04:35,525 he figures out a way to make everything work. 74 00:04:35,608 --> 00:04:36,442 Mike. 75 00:04:36,526 --> 00:04:37,527 I was like... 76 00:04:37,610 --> 00:04:38,611 How you feel? 77 00:04:39,237 --> 00:04:41,239 Once my band broke up, 78 00:04:42,573 --> 00:04:44,993 Lou and I were gonna start a business together. 79 00:04:45,076 --> 00:04:47,328 I wanted to sign some alternative bands 80 00:04:47,412 --> 00:04:49,706 and start this, like, TV business with him. 81 00:04:50,206 --> 00:04:53,126 At this point, he was no longer my manager. We were partners. 82 00:04:53,209 --> 00:04:58,423 But it was also, on the personal level, very mentor-protégé. 83 00:04:59,590 --> 00:05:02,593 Outside of all the glitz and glamour and the huge houses 84 00:05:02,677 --> 00:05:04,304 and the Rolls-Royces and everything, 85 00:05:04,387 --> 00:05:08,391 he was an insecure kid whose nickname was "fat boy" 86 00:05:08,474 --> 00:05:10,184 and would get picked on all the time. 87 00:05:11,102 --> 00:05:15,857 He found his alternate reality in this world, in the pop music world. 88 00:05:18,901 --> 00:05:22,822 My business associates often give me a hard time for being too nice 89 00:05:22,905 --> 00:05:25,033 in negotiations and deal-making. 90 00:05:25,116 --> 00:05:26,451 But at the end of the day, 91 00:05:26,534 --> 00:05:28,870 {n8}I'd rather have the people I do business with 92 00:05:28,953 --> 00:05:30,997 feel like they've been treated fairly. 93 00:05:31,080 --> 00:05:34,292 Remember that what you are really trying to build 94 00:05:34,375 --> 00:05:37,337 is a life that you can look back on and feel good about. 95 00:05:39,756 --> 00:05:41,516 What'd you think of Lou's book? 96 00:05:41,549 --> 00:05:42,550 Br... 97 00:05:42,633 --> 00:05:43,843 Brands, Bands... 98 00:05:44,469 --> 00:05:45,529 And Billions. 99 00:05:45,553 --> 00:05:47,805 Brands... 100 00:05:50,892 --> 00:05:53,895 The first time that I ever heard about Lou Pearlman 101 00:05:53,978 --> 00:05:56,356 was when I got a call from a reader. 102 00:05:56,439 --> 00:05:59,025 "What do you know about this Lou Pearlman 103 00:05:59,108 --> 00:06:01,486 and Trans Continental Airlines, this investment?" 104 00:06:02,153 --> 00:06:05,698 They said that it was some kind of FDIC-insured investment, 105 00:06:05,782 --> 00:06:07,825 and it was going to have this nice yield 106 00:06:07,909 --> 00:06:12,330 which was higher than the highest yields people could get anywhere. 107 00:06:12,830 --> 00:06:14,999 And then some of them are like, "Oh, look." 108 00:06:15,083 --> 00:06:17,919 "It's got extra insurance from Lloyd's of London." 109 00:06:18,836 --> 00:06:23,007 It also was being called an Employee Investment Savings Account, 110 00:06:23,508 --> 00:06:26,928 but Lou said that everyone in the world could buy into it. 111 00:06:27,011 --> 00:06:29,222 So, something was not right. 112 00:06:30,264 --> 00:06:33,101 Soon after I started writing about it, 113 00:06:33,184 --> 00:06:37,271 that caused this whole flood of people asking for their money back. 114 00:06:45,113 --> 00:06:48,199 After the litigation and stuff with the Backstreet Boys, 115 00:06:48,991 --> 00:06:50,993 Pearlman just went on with his life. 116 00:06:51,536 --> 00:06:54,163 But you know, the son of a bitch owes me money. 117 00:06:54,872 --> 00:06:59,836 And by the way, even today, 16 million dollars will get my attention. 118 00:07:01,462 --> 00:07:06,717 He'd paid us a million and a half, but then it stopped and there was no more. 119 00:07:07,760 --> 00:07:12,014 Then he tried to have a check sent to me from a bank in Munich. 120 00:07:13,182 --> 00:07:16,310 I called my friend in Munich, and he checked it out. 121 00:07:17,103 --> 00:07:19,647 The address was a vacant lot. 122 00:07:21,023 --> 00:07:25,778 You can reasonably assume here that I was pissed, 123 00:07:26,404 --> 00:07:30,283 and I would devote my time and my energies to square that. 124 00:07:33,995 --> 00:07:37,290 By 2006, it was starting to get a little bit rough, 125 00:07:37,373 --> 00:07:39,500 and people were calling for their money. 126 00:07:40,626 --> 00:07:43,212 All Ponzi schemes grow to a certain point, 127 00:07:43,296 --> 00:07:46,591 and if you don't bring in new investors to cover the old investors, 128 00:07:46,674 --> 00:07:47,508 you'll have trouble. 129 00:07:47,592 --> 00:07:49,719 That's when the first signs of trouble come. 130 00:07:50,386 --> 00:07:52,066 They'd tell friends and family, 131 00:07:52,096 --> 00:07:55,141 "Hey, this investment I told you about is being looked into." 132 00:07:55,224 --> 00:07:58,853 And once those people started to request their money, it just snowballed. 133 00:08:00,188 --> 00:08:02,523 Nobody wanted to talk to the shareholders, 134 00:08:02,607 --> 00:08:06,027 and I was the only one that was continuing to answer the phones. 135 00:08:06,110 --> 00:08:08,321 They'd call up furious and fuming, 136 00:08:08,404 --> 00:08:10,865 and some even came actually up to the office. 137 00:08:11,991 --> 00:08:15,870 Investors started coming into all of the different entities 138 00:08:15,953 --> 00:08:17,288 looking to get money, 139 00:08:17,371 --> 00:08:20,082 to where there would be, like, scenes being made. 140 00:08:20,166 --> 00:08:22,376 "Where's my money?" "How can I get my money?" 141 00:08:22,460 --> 00:08:25,213 People were stealing things from the studio and the mansion, 142 00:08:25,296 --> 00:08:27,006 trying to get whatever they could. 143 00:08:28,090 --> 00:08:31,844 At that time, there were different investors coming around, 144 00:08:31,928 --> 00:08:34,931 and I'm not gonna say "shady," but I might say "shady." 145 00:08:36,182 --> 00:08:40,269 Just didn't seem like these people were people that you'd wanna be involved with 146 00:08:40,353 --> 00:08:42,355 unless you needed something really desperate. 147 00:08:43,856 --> 00:08:47,193 I started seeing a lot of cars parked out front of the house. 148 00:08:47,276 --> 00:08:49,862 Cars I had never seen. I lived there for seven years. 149 00:08:49,946 --> 00:08:52,615 Gated, people are waiting, following people in. 150 00:08:52,698 --> 00:08:56,369 You know, and I grew up with guns, like, something just was like, 151 00:08:56,452 --> 00:08:58,538 you need to have the gun in... in your room. 152 00:09:01,457 --> 00:09:06,045 Before that, I knew that he had an investment savings account. 153 00:09:06,128 --> 00:09:08,839 It got high yields, and he would never let me do it. 154 00:09:08,923 --> 00:09:11,509 "No, no, no. You don't want to do that. No, no, no." 155 00:09:11,592 --> 00:09:14,929 And I don't know, like, what eventually made him change his mind 156 00:09:15,012 --> 00:09:16,055 and say, "Okay." 157 00:09:16,138 --> 00:09:19,892 But I had a lot of my own money, over 100,000 dollars, invested in this. 158 00:09:20,601 --> 00:09:22,812 I am curious to know if you invested. 159 00:09:26,232 --> 00:09:27,900 I'd rather not talk about it. 160 00:09:28,568 --> 00:09:29,694 Yeah, so... 161 00:09:29,777 --> 00:09:31,137 - Understood. - Yeah. 162 00:09:36,993 --> 00:09:38,828 A lot of people lost money, 163 00:09:39,412 --> 00:09:42,248 Um, Frankie's mom being one of them. 164 00:09:43,457 --> 00:09:45,376 Frankie would still be alive today. 165 00:09:46,836 --> 00:09:49,380 We'd all be much better off today if... 166 00:09:50,131 --> 00:09:51,841 if Lou didn't do any of this. 167 00:09:58,222 --> 00:10:00,474 It was sad, the whole situation. 168 00:10:00,558 --> 00:10:05,521 Um, I think Frankie took, uh, the bad way out if he did commit suicide. 169 00:10:07,148 --> 00:10:10,318 Do you believe that Frankie's death was a suicide? 170 00:10:12,903 --> 00:10:14,864 I believe that it was. 171 00:10:14,947 --> 00:10:17,116 Lou did not believe that it was. 172 00:10:18,326 --> 00:10:22,038 What he told me, probably two months after the fact, 173 00:10:22,955 --> 00:10:24,957 was that Frankie was murdered. 174 00:10:26,167 --> 00:10:27,335 And I go, "Who did this?" 175 00:10:27,418 --> 00:10:29,545 "Well, I don't know, but I'm gonna find out." 176 00:10:30,504 --> 00:10:33,424 And I told him, "One minute, you don't care, 177 00:10:33,924 --> 00:10:36,844 and the next minute, 'He was murdered, ' and now you care?" 178 00:10:37,345 --> 00:10:38,846 "That doesn't make any sense." 179 00:10:39,805 --> 00:10:41,849 But knowing what I know now, 180 00:10:41,932 --> 00:10:47,813 I believe that Lou was, at that point, probably starting to panic, in a way, 181 00:10:47,897 --> 00:10:50,733 because his stories are spiraling out of control. 182 00:11:05,498 --> 00:11:08,501 We had this beautiful space downtown. 183 00:11:09,418 --> 00:11:13,422 I'm standing in front of the elevator, and as it comes down, he comes into frame. 184 00:11:13,923 --> 00:11:14,965 Doors open up. He's like, 185 00:11:15,049 --> 00:11:17,009 "Hey, I gotta run. I just want to say I love you." 186 00:11:17,051 --> 00:11:19,261 "I'm going out. I'm gonna be on vacation a while." 187 00:11:19,345 --> 00:11:20,763 "Thank you for everything." 188 00:11:21,514 --> 00:11:23,015 "Okay?" Okay. 189 00:11:25,976 --> 00:11:28,354 A few weeks later, the FBI raided that space. 190 00:11:34,235 --> 00:11:36,612 We had a warrant for the Church Street office. 191 00:11:37,363 --> 00:11:39,198 We seized a ton of documents. 192 00:11:40,074 --> 00:11:44,453 I was able to go in with the FBI that day and bring out boxes of evidence. 193 00:11:45,579 --> 00:11:47,581 I was sitting typing and they said, 194 00:11:47,665 --> 00:11:50,584 "Would you please lift your hands off your keyboard." 195 00:11:50,668 --> 00:11:54,380 "Do not touch one thing, and please would you come with me." 196 00:11:54,463 --> 00:11:57,007 And I thought, "That's it. I'm done." 197 00:11:58,384 --> 00:12:00,594 There was also a search warrant for his home, 198 00:12:00,678 --> 00:12:02,430 and I went with the team that day as well. 199 00:12:03,597 --> 00:12:05,266 {n8}Lou Pearlman wasn't there, 200 00:12:05,349 --> 00:12:08,185 {n8}but there was a young man there that was taking care of the house. 201 00:12:08,894 --> 00:12:12,106 I could see local news trucks, unmarked cars, 202 00:12:12,189 --> 00:12:15,568 people in the FBI jackets that you see on TV. 203 00:12:16,152 --> 00:12:19,363 Every drawer, every cabinet, everything is open. 204 00:12:19,947 --> 00:12:23,451 And then I saw Scott Skinner, and he's like, 205 00:12:23,534 --> 00:12:25,953 "Patrick King, we've been waiting for you." 206 00:12:26,662 --> 00:12:27,997 There was a safe at the house 207 00:12:28,080 --> 00:12:30,458 that you could tell had been cleaned out in a hurry. 208 00:12:31,125 --> 00:12:34,420 By the time we did the search on his office and his house, 209 00:12:34,503 --> 00:12:37,882 he had been gone, from what I understand, approximately six weeks. 210 00:12:38,549 --> 00:12:40,259 Lou left the country, 211 00:12:40,342 --> 00:12:43,846 and his story to everybody that was asking questions about it was 212 00:12:43,929 --> 00:12:46,348 he was gonna get the money out of the lock boxes. 213 00:12:46,432 --> 00:12:49,435 He was going to make this all right. He'll be back, and he'll figure it out. 214 00:12:59,528 --> 00:13:03,783 Meager cash flow is the primary cause of migraine headaches 215 00:13:03,866 --> 00:13:08,370 and upset stomachs among entrepreneurs and new business owners. 216 00:13:09,121 --> 00:13:12,458 Cash flow is the fuel to get your business started 217 00:13:12,541 --> 00:13:14,043 and keeps it running. 218 00:13:14,126 --> 00:13:16,670 Without the dough, it won't go. 219 00:13:23,886 --> 00:13:29,183 It was a few weeks after the raid on Church Street 220 00:13:29,266 --> 00:13:31,769 when I started hearing about the investment scheme. 221 00:13:31,852 --> 00:13:33,312 I didn't know anything about it. 222 00:13:34,438 --> 00:13:37,149 Somebody from the inside 223 00:13:37,733 --> 00:13:40,444 must have been giving the feds information. 224 00:13:41,237 --> 00:13:45,699 There was somebody at Trans Con that was probably a snitch. 225 00:13:45,783 --> 00:13:48,053 Did you have anybody from within the company 226 00:13:48,077 --> 00:13:49,578 that you guys were working with? 227 00:13:49,662 --> 00:13:51,038 No. 228 00:13:51,121 --> 00:13:53,916 Uh, Lou kept everybody at a distance. 229 00:13:54,458 --> 00:13:57,711 He didn't want anybody to be able to say what was going on. 230 00:14:01,632 --> 00:14:05,469 Lou and I were starting our company together, so we went on the road. 231 00:14:06,637 --> 00:14:08,180 Our first stop was Dublin. 232 00:14:08,264 --> 00:14:12,059 He was gonna accept a Lifetime Achievement Award at this big award show. 233 00:14:12,142 --> 00:14:14,645 We went from Dublin to Berlin. 234 00:14:14,728 --> 00:14:16,438 We had some investor meetings there. 235 00:14:17,064 --> 00:14:20,192 From there, we would go to Spain, down to Panama, 236 00:14:20,276 --> 00:14:22,570 and we ultimately wound up in Bali. 237 00:14:24,071 --> 00:14:27,575 When I was traveling with Lou, I wasn't on the lam. 238 00:14:27,658 --> 00:14:29,743 I wasn't on the run. I was starting a business. 239 00:14:30,911 --> 00:14:34,123 I had no freaking idea what was going on. 240 00:14:40,045 --> 00:14:42,423 A close friend of Lou's called me 241 00:14:42,506 --> 00:14:45,467 and told me what was going on with the investments. 242 00:14:46,594 --> 00:14:49,680 I didn't think my son would have been involved in taking money 243 00:14:49,763 --> 00:14:51,557 and wasting somebody else's money. 244 00:14:53,225 --> 00:14:55,561 My son was not that kind of a guy. 245 00:14:57,563 --> 00:14:59,815 Frankie was so loyal to Lou Pearlman. 246 00:15:00,733 --> 00:15:02,067 He defended him. 247 00:15:03,068 --> 00:15:07,364 And I think it broke his heart when he learned about this. 248 00:15:10,242 --> 00:15:12,369 There's a reason people want their money out 249 00:15:12,453 --> 00:15:15,205 because they heard their cousin tried to get their money out, 250 00:15:15,289 --> 00:15:16,457 and they couldn't. 251 00:15:16,540 --> 00:15:19,251 And their friend tried to get their money out, and they couldn't. 252 00:15:19,335 --> 00:15:21,629 You start seeing things in the news, 253 00:15:21,712 --> 00:15:23,547 and that's when the collapse begins. 254 00:15:24,506 --> 00:15:27,051 Connie and Pat Caesar say they've been badly burned 255 00:15:27,134 --> 00:15:30,137 by Trans Continental Airlines and the man who runs it, 256 00:15:30,220 --> 00:15:32,473 boy band mogul Lou Pearlman. 257 00:15:32,556 --> 00:15:35,809 According to the Caesars, they invested 300,000 dollars 258 00:15:35,893 --> 00:15:37,770 in the company's savings program 259 00:15:37,853 --> 00:15:41,190 that offered the public big returns and no risk. 260 00:15:41,273 --> 00:15:43,400 He's just taken our lives away. 261 00:15:43,484 --> 00:15:46,987 Two months ago, the Caesars tried to get their investment back, 262 00:15:47,071 --> 00:15:50,532 but the money, their life savings, never arrived. 263 00:15:51,700 --> 00:15:55,162 What these people were promised was that their account was held in their name 264 00:15:55,245 --> 00:15:57,331 with their own account number in a bank. 265 00:15:57,414 --> 00:15:59,500 If the bank were to collapse for some reason, 266 00:15:59,583 --> 00:16:02,127 then the funds would be FDIC-insured. 267 00:16:02,211 --> 00:16:04,421 But their statement didn't come from a bank. 268 00:16:04,505 --> 00:16:06,715 It came from Trans Continental Airlines. 269 00:16:06,799 --> 00:16:09,051 Lou had Trans Continental Airlines, 270 00:16:09,134 --> 00:16:12,846 which ironically, I never, not once, saw a Trans Continental airplane. 271 00:16:13,764 --> 00:16:16,517 When you're a naive kid and see airplanes on somebody's desk 272 00:16:16,600 --> 00:16:19,186 and they say they own an airline, you believe them. 273 00:16:20,312 --> 00:16:23,565 Trans Continental Airlines was supposedly an airline company 274 00:16:23,649 --> 00:16:27,444 that he ran that owned, I think it was, like, maybe 50 planes, 275 00:16:27,528 --> 00:16:32,491 and supposedly celebrities or corporations would lease and rent jets from him. 276 00:16:33,117 --> 00:16:34,618 We started leasing airplanes, 277 00:16:34,702 --> 00:16:37,621 {n8}and we started leasing them to not only airlines 278 00:16:37,705 --> 00:16:40,082 {n8}but also to people in the rock and roll industry 279 00:16:40,165 --> 00:16:41,792 like New Kids on the Block. 280 00:16:42,459 --> 00:16:44,962 Ultimately, we discovered that none of that was true. 281 00:16:45,045 --> 00:16:46,422 He didn't have any planes. 282 00:16:46,505 --> 00:16:50,217 There were no operations at all other than this investment scam. 283 00:16:54,304 --> 00:16:57,182 They had this little brochure about Trans Continental Airlines, 284 00:16:57,266 --> 00:17:02,146 where he had this picture that was actually someone holding up 285 00:17:02,229 --> 00:17:05,566 a model plane with the airport in the background. 286 00:17:06,400 --> 00:17:10,487 The hand of the person is just cut off so that it doesn't appear in the picture. 287 00:17:14,700 --> 00:17:16,910 Pearlman was a master forger. 288 00:17:16,994 --> 00:17:20,080 He would forge signatures and create false seals. 289 00:17:21,248 --> 00:17:24,251 He provided us with a statement from German Savings Bank 290 00:17:24,334 --> 00:17:27,087 showing he had 30 million dollars in this bank in Germany. 291 00:17:27,796 --> 00:17:29,631 And it turned out, of course, 292 00:17:29,715 --> 00:17:32,634 that the German Savings Bank was never a legitimate bank. 293 00:17:34,803 --> 00:17:39,725 Lou Pearlman had totally false bank statements, tax returns. 294 00:17:39,808 --> 00:17:44,438 State documents also accuse Pearlman of using a mysterious accounting firm 295 00:17:44,521 --> 00:17:47,524 to hide the scheme from investors and Wall Street. 296 00:17:48,233 --> 00:17:50,694 He did create this fake accounting firm 297 00:17:50,778 --> 00:17:52,571 called Cohen & Siegel, 298 00:17:52,654 --> 00:17:57,618 {n8}which was named after two gangsters, Mickey Cohen and Bugsy Siegel. 299 00:17:59,078 --> 00:18:03,290 And then a couple of investors got a letter signed by Harry Milner, 300 00:18:03,373 --> 00:18:05,125 CFO of Trans Continental Airlines, 301 00:18:05,209 --> 00:18:08,212 assuring them that this was all just a big misunderstanding 302 00:18:08,295 --> 00:18:11,924 and that everything was gonna be fine and they'd be able to get their money out. 303 00:18:12,007 --> 00:18:14,259 And we were all saying, "Who's Harry Milner?" 304 00:18:14,343 --> 00:18:17,387 We've been working on this for a year and never heard of this person. 305 00:18:18,055 --> 00:18:20,766 We kept trying to contact Harry Milner 306 00:18:20,849 --> 00:18:24,645 to ask him, "Hey, what's going on here? Where are you getting these numbers?" 307 00:18:24,728 --> 00:18:28,357 Sadly, we'd come to find out that Harry Milner had passed away 308 00:18:28,440 --> 00:18:30,984 long before any of these returns had been signed. 309 00:18:32,277 --> 00:18:35,572 There was an association between Lou Pearlman and Harry Milner, 310 00:18:35,656 --> 00:18:37,950 but it was many, many years ago. 311 00:18:38,033 --> 00:18:40,327 And when we actually went into the offices, 312 00:18:40,410 --> 00:18:43,789 they found where Lou Pearlman had actually written the letter 313 00:18:43,872 --> 00:18:45,999 and given it to his assistant to type up. 314 00:18:46,083 --> 00:18:48,502 There were a couple of files that I took of Lou's 315 00:18:48,585 --> 00:18:50,712 that I was just kind of iffy about. 316 00:18:50,796 --> 00:18:53,382 Letters that maybe could be perceived differently 317 00:18:53,465 --> 00:18:55,384 that I'd written to some people. 318 00:18:55,467 --> 00:18:57,678 I just was... I thought, I don't want anybody... 319 00:18:57,761 --> 00:18:59,555 I didn't want anyone else reading them. 320 00:19:01,348 --> 00:19:02,766 Ultimately, we found 321 00:19:02,850 --> 00:19:06,103 over 1,000 people had invested in this plan. 322 00:19:06,186 --> 00:19:08,856 It had gotten up to probably 300 million dollars. 323 00:19:10,149 --> 00:19:12,943 He also ran a bank Ponzi scheme, if you will, 324 00:19:13,026 --> 00:19:15,737 because he went to one bank and he'd borrow 100,000 dollars. 325 00:19:15,821 --> 00:19:17,741 When that became mature, he'd go to the next bank 326 00:19:17,781 --> 00:19:20,492 and borrow 200,000 dollars, so he could pay this money back 327 00:19:20,576 --> 00:19:23,203 and then still have some money to take out. 328 00:19:23,287 --> 00:19:26,498 And he kept building on that until the loans were in the millions. 329 00:19:27,166 --> 00:19:30,377 {n8}Lou's investor Ponzi scheme was like 300 million, 330 00:19:30,460 --> 00:19:32,921 {n8}and the bank fraud was like 200 million. 331 00:19:33,005 --> 00:19:34,006 That we know about. 332 00:19:34,840 --> 00:19:37,092 This Polk County man who wants to be anonymous 333 00:19:37,176 --> 00:19:40,429 had invested nearly a quarter of a million dollars. 334 00:19:40,804 --> 00:19:44,391 Pearlman himself picked him up in a limo, took him to dinner, 335 00:19:44,474 --> 00:19:49,521 and showed him documents to prove that the savings program was FDIC-insured. 336 00:19:49,605 --> 00:19:52,524 When he picked that paper up with the seal, I believed him. 337 00:19:54,610 --> 00:19:57,613 As the things with the news started picking up more and more, 338 00:19:57,696 --> 00:20:00,407 then I started knowing something serious was going on. 339 00:20:00,490 --> 00:20:03,702 {n8}It has affected my grandchildren because that money was there 340 00:20:03,785 --> 00:20:05,329 for their college education. 341 00:20:05,412 --> 00:20:06,705 It... it's gone. 342 00:20:06,788 --> 00:20:09,791 When all of the news started coming out about that stuff, 343 00:20:09,875 --> 00:20:12,794 I recall feeling a sense of being used, 344 00:20:13,295 --> 00:20:17,591 but also, like, and these people must think that we were in on it with him. 345 00:20:19,676 --> 00:20:22,304 {n8}He should be put in jail and kept in jail until he dies. 346 00:20:23,347 --> 00:20:24,556 I was floored. 347 00:20:24,640 --> 00:20:27,601 Wait, hold on, ripped off people from their retirement? 348 00:20:28,435 --> 00:20:32,189 You know, I was a cop. To hear that, it... it was devastating. 349 00:20:32,814 --> 00:20:35,525 He's a crook. He's a crook. Put him in jail. 350 00:20:39,363 --> 00:20:44,743 Traditionally, in the FBI, you don't have any formal relationships with the media. 351 00:20:45,619 --> 00:20:49,998 But Helen was writing a lot of things about the Pearlman investigation, 352 00:20:50,082 --> 00:20:53,794 and I just called her up one day and said, "Hey, can we help each other out here?" 353 00:20:53,877 --> 00:20:55,037 You know, that sort of thing. 354 00:20:56,129 --> 00:20:59,841 I had this blog that was part of the St. Petersburg Times. 355 00:20:59,925 --> 00:21:03,512 It's called Money Talk, and a lot of people followed that 356 00:21:03,595 --> 00:21:05,055 because they were interested in Lou. 357 00:21:05,138 --> 00:21:08,392 And so people would be posting rumors about, you know, 358 00:21:08,475 --> 00:21:10,644 he's here, he's there, and of course, 359 00:21:10,727 --> 00:21:13,647 the investors really wanted him to be brought to justice. 360 00:21:15,482 --> 00:21:18,026 You got to realize that once you become a fugitive, 361 00:21:18,110 --> 00:21:20,028 that next knock at the door, what is that? 362 00:21:20,779 --> 00:21:22,155 Where am I gonna go today? 363 00:21:29,329 --> 00:21:31,081 {n8}During the time we were in Bali, 364 00:21:31,164 --> 00:21:34,376 he was relying on me solely for his freedom. 365 00:21:35,043 --> 00:21:36,253 I didn't know at the time. 366 00:21:37,671 --> 00:21:39,881 His assets had been frozen, 367 00:21:39,965 --> 00:21:43,552 which forced all of the travel to be on my credit card. 368 00:21:44,553 --> 00:21:46,305 So it was chaos, but I was like, 369 00:21:46,388 --> 00:21:49,725 there's been 12-15 lawsuits every other time, 370 00:21:49,808 --> 00:21:52,352 and he's gotten out of them and just cruised on. 371 00:21:53,937 --> 00:21:58,734 I start to go down to the business center of the Westin in Bali, 372 00:21:58,817 --> 00:22:01,903 and I'm, like, seeing all of these news reports about Lou. 373 00:22:01,987 --> 00:22:05,073 And this woman, Helen Huntley, had a message board, 374 00:22:05,157 --> 00:22:09,036 and people that I recognize are trying to find Lou. 375 00:22:10,537 --> 00:22:12,706 So I'm sitting next to him in this business center, 376 00:22:12,789 --> 00:22:14,916 and he's sketching away over there, 377 00:22:15,000 --> 00:22:18,795 and then he picks up the... the paper, and he shows it to me, 378 00:22:19,296 --> 00:22:21,089 and he says, "Does this look real to you?" 379 00:22:21,757 --> 00:22:24,468 And it says "German Savings Bank" on it, 380 00:22:24,551 --> 00:22:28,764 and he had hand-drawn this bank seal for, like, a loan document, 381 00:22:29,473 --> 00:22:32,934 and he faxed it off from the business center to Bank of America 382 00:22:33,518 --> 00:22:35,020 I think it was for a million dollars. 383 00:22:36,188 --> 00:22:37,439 And he got the damn loan. 384 00:22:39,858 --> 00:22:43,653 And I was like, "Dude, you got to tell me what's going on. This is not right." 385 00:22:44,154 --> 00:22:47,449 "Oh no, buddy. This is how you have to do business on a global scale." 386 00:22:48,742 --> 00:22:50,369 The next day, I called my family. 387 00:22:51,578 --> 00:22:52,621 And I left. 388 00:22:56,041 --> 00:22:58,085 {n8}I did get a call from a reader 389 00:22:58,168 --> 00:23:02,089 {n8}who was also staying at this resort in Bali. 390 00:23:02,672 --> 00:23:07,427 {n8}He was walking on the beach with his wife and saw Lou out there. 391 00:23:08,553 --> 00:23:11,640 {n8}Helen's contacted me saying, "Hey, I got this reader 392 00:23:11,723 --> 00:23:15,644 who thinks he's seen Lou Pearlman in the hotel he was at." 393 00:23:15,727 --> 00:23:18,021 Okay. I said, "Well, where's the hotel?" "Indonesia." 394 00:23:18,105 --> 00:23:19,356 "Okay, let's go." 395 00:23:20,816 --> 00:23:23,652 {n8}So, the reader had his camera, and he and his wife, 396 00:23:23,735 --> 00:23:27,656 they were eating breakfast in the hotel, and they saw Lou. 397 00:23:27,739 --> 00:23:28,865 And they took a picture. 398 00:23:29,950 --> 00:23:32,869 {n8}And when he took the picture, not only did he get Lou, 399 00:23:32,953 --> 00:23:35,664 {n8}he got my two agents at the table next to Lou, 400 00:23:35,747 --> 00:23:37,124 watching him at the time. 401 00:23:38,542 --> 00:23:41,461 I'm getting contacted by the guys in Jakarta. "Yeah, that's Lou." 402 00:23:41,545 --> 00:23:43,922 I said, "Well, we got an arrest warrant for him." 403 00:23:44,005 --> 00:23:45,298 "Get him out of there." 404 00:23:45,382 --> 00:23:46,883 Good morning. Good morning, everyone. 405 00:23:46,967 --> 00:23:49,928 Boy band mogul, Lou Pearlman, has been arrested. 406 00:23:50,011 --> 00:23:52,013 Pearlman appeared in court in Guam today 407 00:23:52,097 --> 00:23:54,266 after spending months hiding from authorities. 408 00:23:54,349 --> 00:23:56,476 The creator of *NSYNC and the Backstreet Boys 409 00:23:56,560 --> 00:23:59,563 is accused of bank fraud and faces several lawsuits. 410 00:23:59,646 --> 00:24:03,859 {n8}Pearlman was picked up in Indonesia Thursday and turned over to the FBI. 411 00:24:07,988 --> 00:24:10,532 Three days after I came back from Bali, 412 00:24:11,408 --> 00:24:13,994 woke up 6:45 in the morning to a call saying, 413 00:24:14,077 --> 00:24:18,039 "Michael Johnson, this is Agent Scott Skinner from the FBI." 414 00:24:18,123 --> 00:24:20,417 "We've arrested Lou Pearlman in Bali, 415 00:24:20,500 --> 00:24:23,044 and he was under the name Incognito Johnson." 416 00:24:23,628 --> 00:24:24,796 I'm Michael Johnson. 417 00:24:24,880 --> 00:24:28,300 He registered as Incognito Johnson because we were on my credit card. 418 00:24:28,383 --> 00:24:31,094 Through that, the investigation was tied back to me. 419 00:24:31,928 --> 00:24:34,347 I had depositions of ten hours. 420 00:24:35,307 --> 00:24:37,058 I mean, it was just horrible. I... 421 00:24:37,142 --> 00:24:41,605 And the person that interviewed me, Agent Skinner, 422 00:24:42,439 --> 00:24:46,234 he was just very harsh, and I felt like I'd done something, 423 00:24:46,318 --> 00:24:47,694 and I... and I hadn't. 424 00:24:48,820 --> 00:24:51,364 Lou never involved me in any of that stuff. 425 00:24:54,910 --> 00:24:56,536 Yes, I'm guilty 426 00:24:57,537 --> 00:25:00,582 of making a profit after taking a huge risk, 427 00:25:00,665 --> 00:25:03,668 and I'm guilty of making multi-millionaires 428 00:25:03,752 --> 00:25:06,338 out of a whole bunch of young singers too. 429 00:25:06,421 --> 00:25:08,548 I don't think that makes me a bad person. 430 00:25:14,179 --> 00:25:16,181 When Lou Pearlman was caught, 431 00:25:17,182 --> 00:25:20,018 I felt relieved and glad that they found him. 432 00:25:21,645 --> 00:25:22,645 Happy. 433 00:25:23,438 --> 00:25:25,649 When Lou was caught, the cop in me cheered. 434 00:25:25,732 --> 00:25:28,193 You know, like, "I can't believe you did this to people." 435 00:25:28,276 --> 00:25:31,029 "I can't believe that I'm somehow associated with that." 436 00:25:31,863 --> 00:25:33,365 He betrayed the family. 437 00:25:35,992 --> 00:25:37,202 Lou was a snake. 438 00:25:37,702 --> 00:25:40,997 He was so busy seeing the shiny objects 439 00:25:41,081 --> 00:25:43,124 that he didn't see who he hurt. 440 00:25:43,792 --> 00:25:46,211 Several investors say Pearlman would remind them 441 00:25:46,294 --> 00:25:48,547 he ran a major entertainment empire. 442 00:25:48,630 --> 00:25:51,925 I'm going to be doing this contract with Michael Jackson. 443 00:25:52,759 --> 00:25:56,221 These broken promises left the Caesars devastated. 444 00:25:56,304 --> 00:26:00,892 We don't know where the next dollar is going to come from. 445 00:26:01,977 --> 00:26:03,562 We don't have any other money. 446 00:26:06,106 --> 00:26:09,067 If I went to sleep tonight and didn't wake up, 447 00:26:09,150 --> 00:26:10,610 I'm fine with that 448 00:26:11,152 --> 00:26:13,613 because at least I can find some peace. 449 00:26:15,282 --> 00:26:17,867 But three years before federal agents stormed into 450 00:26:17,951 --> 00:26:20,203 Lou Pearlman's entertainment empire, 451 00:26:20,287 --> 00:26:24,165 {n8}then Assistant State Attorney General Jackie Dowd had been hot on the trail 452 00:26:24,249 --> 00:26:26,126 of another Pearlman company. 453 00:26:26,209 --> 00:26:29,921 - You felt you had a case. - I very strongly felt I had a case. 454 00:26:30,005 --> 00:26:31,165 According to Dowd, 455 00:26:31,214 --> 00:26:34,509 the state had 2,000 complaints from consumers who felt misled 456 00:26:34,593 --> 00:26:38,471 by Pearlman's model scouting company, Trans Continental Talent, 457 00:26:38,555 --> 00:26:42,517 but Dowd says just when she was ready to file a massive consumer fraud case, 458 00:26:42,601 --> 00:26:44,060 she was forced to resign, 459 00:26:44,769 --> 00:26:47,230 {n8}and several months later, the Attorney General's office 460 00:26:47,314 --> 00:26:50,483 {n8}shut down the investigation and cleared the company. 461 00:26:52,152 --> 00:26:55,071 A lot of people thought that investigation was dismissed 462 00:26:55,655 --> 00:26:58,867 because of Lou's relationship with certain people, okay? 463 00:26:59,868 --> 00:27:02,120 That's as far as I'm gonna go with that. 464 00:27:03,872 --> 00:27:06,416 You know, there were rumors that he had relationships 465 00:27:06,499 --> 00:27:10,378 with the Attorney General of the state of Florida at the time. 466 00:27:10,962 --> 00:27:12,762 A federal lawsuit filed this week 467 00:27:12,797 --> 00:27:15,175 accused Crist of not doing his job then 468 00:27:15,258 --> 00:27:17,594 and claims that investigation could have uncovered 469 00:27:17,677 --> 00:27:20,430 the Pearlman savings program in 2004. 470 00:27:21,556 --> 00:27:25,352 But ultimately, the suit against Crist was thrown out. 471 00:27:32,317 --> 00:27:33,818 It's such a great honor 472 00:27:33,902 --> 00:27:36,404 to have right here in our hometown 473 00:27:36,488 --> 00:27:39,115 probably the number one sheriff in the United States. 474 00:27:39,991 --> 00:27:41,701 People will do anything for fame. 475 00:27:42,577 --> 00:27:46,956 But people will do almost anything for the proximity to somebody famous. 476 00:27:47,040 --> 00:27:48,958 Whatever we have to do 477 00:27:49,042 --> 00:27:51,544 to get him re-elected over and over again, brother, 478 00:27:51,628 --> 00:27:52,796 we'll do it! 479 00:27:53,922 --> 00:27:57,133 And Lou used that to bring in more and more investment. 480 00:27:58,343 --> 00:28:05,266 Everything he'd always been doing, it was always a front for investment. 481 00:28:05,350 --> 00:28:06,601 Graphic depictions... 482 00:28:06,685 --> 00:28:09,562 It snowballed over 40-something years, 483 00:28:09,646 --> 00:28:11,690 and it had different heads, 484 00:28:11,773 --> 00:28:14,067 but the heart of it was always the same. 485 00:28:20,073 --> 00:28:21,825 On the federal level, 486 00:28:21,908 --> 00:28:25,954 the case against Lou was brought by the District Attorney's office in Orlando. 487 00:28:27,288 --> 00:28:29,999 Seems to me that it was pretty quick from indictment 488 00:28:30,083 --> 00:28:33,378 to him negotiating and entering a plea of guilty. 489 00:28:35,255 --> 00:28:37,507 I was very happy that he pled guilty 490 00:28:37,590 --> 00:28:40,552 because the way he was and the way his personality was, 491 00:28:40,635 --> 00:28:42,887 you know, you kind of thought he would go down fighting. 492 00:28:44,305 --> 00:28:47,183 You know, there were investors who came to the sentencing 493 00:28:47,267 --> 00:28:50,186 and talked about how he had ruined their lives. 494 00:28:50,270 --> 00:28:53,773 There was no remorse, nothing. I... I don't understand people like that. 495 00:28:53,857 --> 00:28:55,942 You don't expect to see a penny back? 496 00:28:56,025 --> 00:28:57,025 No, not at all. 497 00:28:57,569 --> 00:29:00,572 Lawyers who packed today's Lou Pearlman hearing 498 00:29:00,655 --> 00:29:02,782 circled like sharks afterward. 499 00:29:02,866 --> 00:29:06,327 Each wants his client at the top of the payback list. 500 00:29:06,411 --> 00:29:08,955 {n8}I do feel confident that he has, uh, money. 501 00:29:09,038 --> 00:29:14,043 {n8}Uh, but, uh, if I had the ability to prove that he had money I'd have already got it. 502 00:29:15,211 --> 00:29:19,007 I was on the front row, and Pearlman turned around. 503 00:29:19,090 --> 00:29:20,800 He's kind of ashen-looking. 504 00:29:21,301 --> 00:29:23,762 I said, "You should've paid me, you asshole." 505 00:29:25,555 --> 00:29:28,391 I wanted to be there when the hammer came down. 506 00:29:30,477 --> 00:29:33,396 {n8}Lou Pearlman sentenced today for defrauding banks and investors. 507 00:29:33,480 --> 00:29:36,274 The judge handed down a 25-year prison sentence, 508 00:29:36,357 --> 00:29:40,153 but Pearlman can have a month reduced for each million he pays back. 509 00:29:41,488 --> 00:29:44,157 The Federal District Judge told Mr. Pearlman, 510 00:29:44,657 --> 00:29:47,994 "For every million dollars you can turn over to the government, 511 00:29:48,077 --> 00:29:51,581 I'll reduce your sentence by a month." 512 00:29:52,165 --> 00:29:54,167 In essence, you can buy your way out of prison. 513 00:29:55,543 --> 00:29:59,839 His sentence was 25 years, which is unheard of. 514 00:29:59,923 --> 00:30:03,426 Murderers don't get 25 years, and this was a financial crime. 515 00:30:03,510 --> 00:30:05,261 They would've hung him if they could. 516 00:30:09,182 --> 00:30:10,391 I never thought 517 00:30:10,475 --> 00:30:13,061 Lou was going to meet any sort of consequence. 518 00:30:13,561 --> 00:30:16,689 I thought when he went to prison, he was going to be out fast. 519 00:30:19,609 --> 00:30:22,445 I was so confused when Lou went to prison. 520 00:30:23,112 --> 00:30:28,451 The emotion of it, it's still cloudy, you know, it's still cloudy for me. 521 00:30:32,038 --> 00:30:33,456 I never went to go see him. 522 00:30:33,957 --> 00:30:36,376 I never saw him in jail. I didn't go visit him. 523 00:30:38,127 --> 00:30:39,587 There was no contact from me. 524 00:30:41,631 --> 00:30:45,510 I knew I needed to separate myself from the situation, so I didn't call him. 525 00:30:46,719 --> 00:30:47,720 That was it. 526 00:30:51,307 --> 00:30:53,685 I still had that feeling of friendship, 527 00:30:53,768 --> 00:30:58,273 but at the same time, I was kind of glad he was where he was. 528 00:31:00,024 --> 00:31:01,317 Did you visit him? 529 00:31:01,818 --> 00:31:03,018 Uh, well, they wouldn't let me 530 00:31:03,069 --> 00:31:06,364 because I had some, uh, legal problems myself at the time. 531 00:31:06,447 --> 00:31:09,826 So they, actually... I tried to, and they kept denying me. 532 00:31:10,368 --> 00:31:13,913 But when he was in prison, a guy named Peter contacted me. 533 00:31:13,997 --> 00:31:16,833 He was telling me they loved Lou. They loved him in jail. 534 00:31:19,836 --> 00:31:22,463 Ex-wife would always say, "You have an evil laugh." 535 00:31:22,547 --> 00:31:24,632 I'd go... 536 00:31:24,716 --> 00:31:26,843 I was like, "You don't know what's going on." 537 00:31:29,053 --> 00:31:31,890 I knew the Lou Pearlman that was in the real world, 538 00:31:31,973 --> 00:31:34,142 and I knew the Lou Pearlman in prison. 539 00:31:35,184 --> 00:31:38,021 Right around 2000, I met Lou in his office. 540 00:31:38,104 --> 00:31:41,691 He was very down-to-earth, great guy, and we hit it off right away. 541 00:31:43,067 --> 00:31:45,528 We were gonna do the deal with the Church Street Station. 542 00:31:45,612 --> 00:31:46,863 I met the owners. 543 00:31:46,946 --> 00:31:51,451 And then, unfortunately, I got arrested. 544 00:31:51,534 --> 00:31:58,374 I was arrested for RICO, mail fraud, bank fraud, and conspiracy to all those. 545 00:32:00,251 --> 00:32:04,380 I was in county jail awaiting sentencing, and I opened up the newspaper, 546 00:32:04,464 --> 00:32:09,302 and I see, right on the front page, him getting on a plane with shackles. 547 00:32:09,385 --> 00:32:12,889 I'm like, "Oh my God, if he actually goes to prison, 548 00:32:13,473 --> 00:32:15,642 we can hang out together. It'd be great." 549 00:32:17,310 --> 00:32:20,313 So I'm sitting at lunch, and I look outside, 550 00:32:21,064 --> 00:32:23,274 and I said, "My God, that's Lou!" 551 00:32:23,358 --> 00:32:24,901 I ran out of the chow hall. 552 00:32:24,984 --> 00:32:26,569 I walked over to him, 553 00:32:26,653 --> 00:32:30,073 and he was like, "Oh my God, Peter. What are you doing here?" 554 00:32:31,074 --> 00:32:32,408 This call is from... 555 00:32:32,492 --> 00:32:33,534 Lou Pearlman. 556 00:32:33,618 --> 00:32:36,079 ...an inmate at a federal prison. 557 00:32:36,162 --> 00:32:38,957 I have hundreds of missed calls and voicemails 558 00:32:39,040 --> 00:32:40,708 from when Lou would call me from prison. 559 00:32:40,792 --> 00:32:43,419 - So, how are you? - I'm doing great, buddy. 560 00:32:43,503 --> 00:32:46,464 I'm walking up by the track, doing my thing, and... 561 00:32:47,048 --> 00:32:49,008 A number of times he got beat up 562 00:32:49,968 --> 00:32:51,552 trying to, like, rat people out 563 00:32:51,636 --> 00:32:53,739 and, like, trying to get deals for ratting people out, 564 00:32:53,763 --> 00:32:54,883 and he'd get beat up for it. 565 00:32:54,931 --> 00:32:55,765 Hello? 566 00:32:55,848 --> 00:32:58,327 - Mikey Mike. What's happening? - How's it going? 567 00:32:58,351 --> 00:33:00,788 It's going good. Chilling out, doing my thing, you know. 568 00:33:00,812 --> 00:33:02,522 I got your email, it says 569 00:33:02,605 --> 00:33:04,899 you have some meetings coming up with your lawyers? 570 00:33:04,983 --> 00:33:05,858 Yep. 571 00:33:05,942 --> 00:33:07,318 He didn't have any lawyers. 572 00:33:09,112 --> 00:33:10,863 So it looks really, really good. 573 00:33:10,947 --> 00:33:11,947 Right. 574 00:33:13,157 --> 00:33:16,202 I would always know that most of what he's saying is not true. 575 00:33:16,285 --> 00:33:18,454 So he's, like, just making up all this stuff 576 00:33:18,538 --> 00:33:21,791 in this, like, fantasy world that he built for himself in prison. 577 00:33:22,917 --> 00:33:26,921 And I never got a sense, in talking with him or visiting with him, 578 00:33:27,005 --> 00:33:29,549 that he felt that he deserved to be in prison. 579 00:33:30,216 --> 00:33:31,843 It was frustrating. 580 00:33:31,926 --> 00:33:33,553 He just never copped to it. 581 00:33:40,643 --> 00:33:46,274 I personally believe that Lou wanted to handle the situation 582 00:33:46,357 --> 00:33:47,775 by paying his investors back 583 00:33:48,317 --> 00:33:52,739 because I feel, in his mind, he wasn't doing anything wrong. 584 00:33:55,491 --> 00:33:58,369 {n8}I don't think he ever had any intention to pay anyone back, 585 00:33:58,453 --> 00:34:00,955 {n8}and I don't think he would have ever been able to. 586 00:34:01,039 --> 00:34:02,540 I mean, he spent the money. 587 00:34:03,750 --> 00:34:08,171 At the end of the day, I believe everybody would have been made whole. 588 00:34:08,755 --> 00:34:11,174 You know, time. He needed a little bit more time. 589 00:34:12,592 --> 00:34:15,511 Everybody believed he really had all this money buried somewhere, 590 00:34:15,595 --> 00:34:17,555 of which nobody found. 591 00:34:17,638 --> 00:34:19,348 I don't believe it was true. 592 00:34:19,432 --> 00:34:23,478 He never did account for about 125 million dollars. 593 00:34:23,561 --> 00:34:27,648 But keep in mind, we all had tried to estimate what it was 594 00:34:27,732 --> 00:34:31,277 based on his financial bank statements and tax returns 595 00:34:31,360 --> 00:34:33,863 that we know were all false. 596 00:34:33,946 --> 00:34:37,909 I mean, so, you know, it could have been a billion dollars. 597 00:34:39,327 --> 00:34:44,082 He told me that he had two and a half to three billion in the Cook Islands hidden, 598 00:34:44,165 --> 00:34:45,625 that no one will ever get to. 599 00:34:47,794 --> 00:34:51,380 Criminals don't understand that criminals lie to each other. 600 00:34:51,464 --> 00:34:55,426 They backstab each other because this one wants what that one has. 601 00:34:55,510 --> 00:34:59,222 That one wants what this one has, and they just play this song and dance 602 00:34:59,305 --> 00:35:02,600 until somebody goes to jail, somebody gets caught, somebody dies. 603 00:35:07,605 --> 00:35:10,358 "This document originated from a correctional facility." 604 00:35:10,441 --> 00:35:12,401 That's always nice on a piece of mail. 605 00:35:13,236 --> 00:35:15,738 He wrote me several letters while he was in jail. 606 00:35:16,489 --> 00:35:18,825 "Hi, babe. I'm still doing my thing." 607 00:35:18,908 --> 00:35:20,868 "It's crazy being in a medium prison 608 00:35:20,952 --> 00:35:23,663 with life-sentenced inmates and drug dealers." 609 00:35:24,247 --> 00:35:27,875 "I've also been getting tons of rappers auditioning." 610 00:35:28,876 --> 00:35:32,088 And he's got a helicopter flying over the Orange County Jail 611 00:35:32,171 --> 00:35:33,047 to break him out. 612 00:35:38,719 --> 00:35:41,931 One day, I'm in the chow hall, and I said, "Where's Lou?" 613 00:35:42,765 --> 00:35:45,601 So I talked to one of the officers. "We took him to the hospital." 614 00:35:45,685 --> 00:35:46,936 I said, "Oh my God." 615 00:35:47,645 --> 00:35:50,148 He got an infection around his heart 616 00:35:50,815 --> 00:35:53,192 because he had had a valve replacement. 617 00:35:53,276 --> 00:35:57,280 He agreed to go into a voluntary coma 618 00:35:57,363 --> 00:36:00,950 so he could have the operation to replace the heart valve, 619 00:36:01,826 --> 00:36:03,286 and he didn't make it. 620 00:36:05,413 --> 00:36:07,333 Lou Pearlman, the disgraced star-maker 621 00:36:07,373 --> 00:36:09,625 behind *NSYNC and the Backstreet Boys 622 00:36:10,293 --> 00:36:11,419 has died in prison. 623 00:36:12,044 --> 00:36:14,255 {n8}Some of Pearlman's former boy band members 624 00:36:14,338 --> 00:36:16,257 {n8}took to social media to pay their respects. 625 00:36:16,340 --> 00:36:17,884 {n8}Justin Timberlake tweeted 626 00:36:17,967 --> 00:36:21,512 {n8}that he hoped Pearlman had "found some peace." 627 00:36:22,263 --> 00:36:25,516 {n8}Everybody really trusted him, and loved him and believed in him. 628 00:36:25,600 --> 00:36:28,561 {n8}But... it was all a facade. 629 00:36:29,770 --> 00:36:31,564 He hurt a lot of us, you know. 630 00:36:32,231 --> 00:36:37,570 ♪ Happy anniversary Donna and Johnny... ♪ 631 00:36:38,779 --> 00:36:40,781 I wanted to tell him how I felt, but... 632 00:36:41,449 --> 00:36:43,117 I didn't get that chance. 633 00:36:44,911 --> 00:36:46,913 I was in the studio producing a band. 634 00:36:46,996 --> 00:36:49,207 And I remember just being at the mixing board 635 00:36:49,957 --> 00:36:51,959 and everything just going white. 636 00:36:53,461 --> 00:36:55,546 And I was like, "It's over." 637 00:36:57,632 --> 00:37:00,301 I remember calling the coroner a couple days later 638 00:37:00,384 --> 00:37:01,844 and he was like, "Man." 639 00:37:01,928 --> 00:37:04,305 "I was starting to wonder what to do with his body 640 00:37:04,388 --> 00:37:05,932 'cause nobody has contacted me." 641 00:37:06,599 --> 00:37:08,935 And the next week or so was a roller coaster 642 00:37:09,018 --> 00:37:11,020 of trying to get ahold of Art Garfunkel, 643 00:37:11,103 --> 00:37:15,233 and he wouldn't claim the body either, and it was just this whole circus. 644 00:37:16,817 --> 00:37:18,569 There was only a couple of us 645 00:37:19,111 --> 00:37:23,241 that was trying to get his body back up to New York. 646 00:37:25,743 --> 00:37:29,830 {n8}Eventually, Lou ended up in the family plot in New York, 647 00:37:29,914 --> 00:37:32,041 {n8}and only five people went to the funeral. 648 00:37:34,543 --> 00:37:38,506 And there's no stone marking where he's buried in the cemetery. 649 00:37:40,383 --> 00:37:41,884 Like a... a forgotten person. 650 00:37:45,930 --> 00:37:47,306 When somebody dies, 651 00:37:47,890 --> 00:37:51,269 I'm not the person to say he deserved to die or something. 652 00:37:51,352 --> 00:37:52,353 I'm not that person. 653 00:37:53,771 --> 00:37:55,690 Because everybody deserves to live. 654 00:38:09,954 --> 00:38:12,081 ♪ Ha-ha-ha-ha ♪ 655 00:38:14,834 --> 00:38:16,377 ♪ I may run and hide ♪ 656 00:38:16,502 --> 00:38:18,754 {n8}♪ When you're screaming my name ♪ 657 00:38:18,838 --> 00:38:19,839 {n8}♪ All right ♪ 658 00:38:23,884 --> 00:38:25,303 ♪ But let me tell you now... ♪ 659 00:38:25,386 --> 00:38:30,057 We truly owe, not everything, but we do owe a lot to Lou. 660 00:38:30,141 --> 00:38:31,581 Thirty years is a long time. 661 00:38:31,642 --> 00:38:34,687 And that's why I wanna start by saying thank you, all you guys, 662 00:38:34,770 --> 00:38:36,480 for helping us create our legacy. 663 00:38:36,564 --> 00:38:39,317 But we've been the ones to continue this 664 00:38:39,400 --> 00:38:42,153 by having loyalty to each other 665 00:38:42,236 --> 00:38:45,781 and a commitment to see this thing through until it's over. 666 00:38:55,333 --> 00:38:58,127 You guys are pop personified, so to receive this 667 00:38:58,210 --> 00:39:03,382 from your golden pop hands is... It's... it's too much. 668 00:39:10,056 --> 00:39:13,225 I think we should remember Lou as a crook 669 00:39:13,768 --> 00:39:17,146 who got what he deserved in the end, 670 00:39:17,229 --> 00:39:20,483 and there are people that are still in pain and hurting 671 00:39:20,566 --> 00:39:22,026 because of his actions. 672 00:39:23,486 --> 00:39:25,404 But at the same time, 673 00:39:25,488 --> 00:39:28,741 there was a crazy explosion of culture 674 00:39:28,824 --> 00:39:34,246 that started in Orlando, Florida, with an idea. 675 00:39:39,043 --> 00:39:42,004 My feelings on Lou Pearlman create quite a duality. 676 00:39:42,505 --> 00:39:45,966 How do I feel this way about this one individual 677 00:39:46,050 --> 00:39:48,135 that really took a lot from a lot of people, 678 00:39:49,011 --> 00:39:51,514 but also gave so much 679 00:39:51,597 --> 00:39:55,518 to millions all over the world still to this day. 680 00:39:57,436 --> 00:40:00,815 In general, I think that no one has anything bad to say about Lou. 681 00:40:00,898 --> 00:40:01,732 Nobody? 682 00:40:01,816 --> 00:40:04,235 Nobody. Except maybe people that lost money 683 00:40:04,318 --> 00:40:06,529 have to say he's the worst guy in the world, 684 00:40:06,612 --> 00:40:09,240 but, uh, you couldn't have a better friend. 685 00:40:10,699 --> 00:40:11,951 Lou was amazing. 686 00:40:12,576 --> 00:40:16,122 And he was as dishonest as everybody else on this planet. 687 00:40:18,958 --> 00:40:20,292 It's not worth hating him. 688 00:40:22,294 --> 00:40:24,004 In my estimation, 689 00:40:24,505 --> 00:40:27,508 I think he's nothing more than a fraudster, a scam artist. 690 00:40:28,008 --> 00:40:30,845 He was a full-time fraud 691 00:40:31,554 --> 00:40:34,682 from the time he got up until the time he went to bed at night. 692 00:40:35,182 --> 00:40:37,143 And so, I guess in some regard, 693 00:40:37,226 --> 00:40:40,354 he was a genius to be able to keep doing it. 694 00:40:44,233 --> 00:40:48,779 In all of this, there is the success on a level 695 00:40:48,863 --> 00:40:52,199 that has never been seen in pop music history. 696 00:40:53,784 --> 00:40:59,540 But the fact that all of this was financed by people's life savings 697 00:41:01,000 --> 00:41:02,418 is disgusting. 698 00:41:05,254 --> 00:41:08,299 And it's only now that I can look back at that, 699 00:41:09,300 --> 00:41:11,302 and that's the fucking monster... 700 00:41:19,226 --> 00:41:21,353 That's the monster that was my best friend. 701 00:41:25,566 --> 00:41:27,818 When you help people as a way of life, 702 00:41:27,902 --> 00:41:29,361 they tend to pass it on. 703 00:41:30,112 --> 00:41:33,407 That is the greatest thing about doing what I do. 704 00:41:35,159 --> 00:41:36,702 Suppose I came to you 705 00:41:36,785 --> 00:41:39,455 when you were an aspiring singer trying to make ends meet, 706 00:41:40,039 --> 00:41:44,293 and I told you I was willing to invest three million dollars to make you a star. 707 00:41:44,376 --> 00:41:47,838 If it all works out, you'll make 10 to 20 million, 708 00:41:47,922 --> 00:41:49,882 and I'll make 20 to 50 million. 709 00:41:50,674 --> 00:41:53,427 Does that sound like a good deal to you? 61261

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