Wednesday, February 28, 2007

The Crist and Pearlman Connection

Via Florida Politics: The New York Post reports that Charlie Crist received nearly $11,000 in illegal campaign donations from Lou Pearlman. The article also claims Crist rode for free on Pearlman's private plane. Crist also did not reimpurse Pearlman for the costs of fundraisers at Pearlman's Orlando home.

Pearlman is the founder of Trans Continental Records. The boy bands the Backstreet Boys and 'N Sync were on the label. Pearlman was being investigated in Florida for a Ponzi scheme. He used forgered FDIC documents to convince people to invest in a overly-high yield savings program. Banks and investors filed lawsuits. News reports estimate Pearlman has embezzled $500,000,000.

People could not take money out of the Employee Investment Savings Account. What is even stranger is that Trans Continental Airlines would pitch an employment program to the public.

"I'm sick about it," said Dorothy Richards of Holiday, who invested $142,000 17 months ago in an "Employee Investment Savings Account" sold by Trans Continental. She's been trying for the past five months to get her money back.

"I've sent registered letters. I've called their hotline. An attorney wrote a letter. I've done everything," she said. Most of the time no one called back, she said, but recently she spoke with Pearlman and is hoping her luck will change.

The Florida Attorney General's office was investigating Pearlman when Crist was running for Governor. Chist's office has no comment on the Post story.


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