Vanity Fair looks at Lou Pearlman, the man behind such bands as Backstreet Boys and ‘NSync. And also blimp entrepreneur, airline tycoon and con man.
The crowds began gathering outside Orlando’s Church Street Station complex early on a sweltering June morning, waiting in line to wander through the abandoned offices of the unlikely multi-millionaire who had transformed this central Florida city into a music-industry mecca. Lou Pearlman, the rotund impresario who created the Backstreet Boys and ‘NSync and guided the early recording careers of Justin Timberlake and scores of other young singers, had been an international celebrity, a popular, easygoing local businessman known as “Big Poppa.” In his heyday, 5 to 10 years ago, he was profiled on 60 Minutes II and 20/20 and produced a hit ABC/MTV series, Making the Band.
Pearlman was long gone now, vanished, one step ahead of the F.B.I. and investigators from the state of Florida, who had rocked Orlando months before by accusing him of being a con man. Gone too were Justin and JC and Kevin and all the other young singers he had made into stars. What remained of Pearlman’s empire, mostly memorabilia and office furniture, was to be auctioned later that day. Up in his gaudy third-floor corner office, with its rust-colored shag carpet and walls lined with gold and platinum records, would-be bidders poked into his cabinets and rifled through his desk drawers; the only secret they uncovered, alas, was Pearlman’s passion for breath mints. At the back, a cavernous storeroom was stacked with framed posters of his bands.
Most of those milling about Pearlman’s offices had scant idea what he had done wrong, much less where he had fled to. Some said Israel, or Germany, or Ireland, or Belarus. He had left the country last January, just days before the state sued him, alleging that he had bilked nearly 2,000 investors, many of them elderly Florida retirees, out of more than $317 million in a Ponzi scheme lasting at least 15 years. A dozen banks also sued for more than $130 million in back loans. Later the indictment would come. Big Poppa, it turned out, had been an accomplished swindler long before he formed his first band. His were scams of jaw-dropping audacity. Pearlman’s largest company, a colossus he boasted was bringing in $80 million a year, was … well, not. For years his investors, starry-eyed after rubbing elbows with ‘NSync and the Backstreet Boys, never questioned his promises of forthcoming riches. When they finally did, he fought back with lawsuits, forged documents, and fictitious financial statements. When the truth began to come out, he ran.
