The Ponzi Scheme
In 2006 investigators discovered Pearlman had perpetrated a long running Ponzi scheme that defrauded investors out of more than $300 million. For more than 20 years Pearlman enticed individuals and banks to invest in Trans Continental Airlines Travel Services Inc. and Trans Continental Airlines Inc., both of which existed only on paper. Pearlman used falsified Federal Deposit Insurance Corporation, AIG and Lloyd's of London documents to win investors' confidence in his "Employee Investment Savings Account" (EISA) program and he used fake financial statements created by a fictitious accounting firm Cohen and Siegel to secure bank loans.
Read more about this topic: Lou Pearlman
Famous quotes containing the word scheme:
“We doubt not the destiny of our country—that she is to accomplish great things for human nature, and be the mother of a nobler race than the world has yet known. But she has been so false to the scheme made out at her nativity, that it is now hard to say which way that destiny points.”
—Margaret Fuller (1810–1850)