Pearlman's Troubles Continue
February 5, 2007 at 5:47 AM (PT)
LOU PEARLMAN's financial difficulties continue from last week (NET NEWS 1/31). WFTV-TV (ACTION 9)/ORLANDO reports there was a major development FRIDAY in the LOU PEARLMAN investigation.
Late FRIDAY afternoon, the state took over PEARLMAN's TRANS CONTINENTAL companies in downtown ORLANDO. The FLORIDA Office of Financial Regulation won a temporary injunction to appoint a third party to run the operation.
The agency had sued the company for offering an illegal savings program that "Action 9" had first exposed. It had left hundreds of investors feeling cheated out of millions of dollars.
The court-ordered receivership has frozen company assets as the state investigation continues.