Lou Perlman, the man who unleashed the boy band phenomenon on the world with his manufactured Backstreet Boys and NSYNC acts, has apparently perpetrated yet another fraud on an unsuspecting public -- this time, literally rather than musically.
In an effort to be crowned king of the music industry sleazebags (no easy feat), Perlman apparently duped 1400 investors out of $317 million and an additional $150 million from banks, pocketing the money rather than using it to build the companies he controlled. When investors asked for a withdrawal, he just gave them money from new investors -- a classic Ponzi scheme.
No charges have been filed yet, but the feds are closing in. Where's Perlman? At large in Germany, where he is (of course) promoting yet another boy band.
If the money keeps falling out of the music business, hopefully frauds like Perlman will learn to stay out of it. Keep on downloading, folks!
(image from 500sec)
