Boy-band impresario Lou Pearlman, who’s been on the lam since a federal probe began in January, was arrested in Indonesia June 14th and turned over to U.S. authorities.
He reportedly was flown to Guam to appear before a federal judge, although he will be extradited to Florida soon, authorities said.
Pearlman has been accused by Florida financial regulators of running a giant Ponzi scheme through his company, Trans Continental Airlines, allegedly swindling investors out of $317 million and banks out of an additional $130 million.
He assured investors an "employee investment savings account" was insured through the FDIC, and insurance brokers AIG and Lloyd’s of London.
The banks apparently loaned money to Trans Continental based on documentation that looked genuine. That included financial information from a Florida certified public accountancy that was apparently fabricated.
Thus far, attorneys and investigators involved in the various civil filings against Pearlman have reportedly had little luck coming up with any of the investors’ money.
Joe Madigan, who alleges he lost $300,000 in the Trans Continental program, told the Orlando Sentinel he doesn’t expect to ever see any of the money, but would like to see justice served.
"I hope that [Pearlman] does time," Madigan said. "He stole money from innocent people who trusted him and put all their life savings into an investment we thought was secure. Also, I don’t think the guys who assisted him in selling these investments should get away scot-free either."
Although he’s had no contact with authorities or court officers involved in his cases since fleeing, Pearlman reportedly faxed a legal brief to the U.S. Bankruptcy Court clerk’s office in Orlando May 22nd, according to the Sentinel.
The brief states that he would like to be appointed a public defender for any court proceedings.
"The allegations have been broad and ambiguous and thus it is necessary to demand that my Constitutional rights be protected," the brief says, accompanied by a signature that reportedly resembles that of the music mogul.
Pearlman was last seen in February in a Berlin theatre where his latest boy band, US5, received an award – just days before a Florida judge appointed a receiver over Trans Continental’s remaining assets, and weeks before investigators conducted a raid on the company’s offices.