cover of episode Lou Pearlman: The Con Man of Pop | I Want It That Way | 1

Lou Pearlman: The Con Man of Pop | I Want It That Way | 1

2024/11/19
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American Scandal

Key Insights

Why did Lou Pearlman decide to start a boyband?

Pearlman was inspired by the financial success of the New Kids on the Block, realizing the lucrative potential of creating a similar group.

How did Lou Pearlman initially fund his aviation businesses?

Pearlman used misleading marketing tactics, such as photographing a model plane to make it appear as though he owned actual aircraft, to attract investors.

What was the turning point for Lou Pearlman's financial deception?

The crash of Airship Enterprises' first blimp, which Pearlman tried to capitalize on by filing an insurance claim for a blimp he didn't fully own, marked a significant moment in his fraudulent practices.

How did Lou Pearlman manage to keep his investors despite financial setbacks?

Pearlman maintained investor confidence by living a lavish lifestyle, convincing them that his businesses were successful, and offering high-interest investment opportunities.

What was the role of the Backstreet Boys in Lou Pearlman's financial scheme?

The Backstreet Boys were central to Pearlman's plan to generate significant revenue, but their delayed success put pressure on his financial structure, leading to more aggressive fundraising tactics.

How did Lou Pearlman's relationship with the Backstreet Boys' parents evolve?

Initially, Pearlman was seen as a generous and supportive figure, but as the group's success was delayed, his pressure on the parents to sign unfavorable contracts revealed a more controlling and manipulative side.

What was the significance of the Employee Investment Savings Account (ISA) offered by Lou Pearlman?

The ISA was a high-interest investment scheme marketed as low-risk due to insurance backing, but it was used by Pearlman to cover cash flow issues and maintain his extravagant lifestyle.

Chapters

Lou Pearlman's journey from a Queens, New York resident to a successful entrepreneur in the music and aviation industries, including the creation of the Backstreet Boys and NSYNC.
  • Pearlman started with a blimp and charter plane company called Trans Continental.
  • He created the Backstreet Boys and NSYNC, becoming a prominent figure in the music industry.
  • Pearlman's businesses included aviation, fast food franchises, and even a male strip act.

Shownotes Transcript

Hi, this is linsey gram, host of american scandal. Our back call ague has moved behind a payland. Recent episodes remain free, but older ones will require a wone plus subscription with wondering plus you get access to the full american, have add free, plus early access to new seasons and more join wondering plus in the wondering APP or on apple podcasts.

Is june two thousand and seven at the western resort in bali, indonesia. Twenty four year old Michael Johnson pushes through the doors of the hotel business center looking for his mentor, lupul man. Parl man is thirty years older than chance and a world famous music moco, best known for creating two of the most successful boy bands in history, the back street boys and in sink.

For the last several months, Johnson has been traveling around the world with prominent scouting bans and meeting with potential investors for a music and media business they're planning on starting together. And at first, Johnson felt immensely lucky to have this opportunity to work with someone as savas parliament. When they first met, Johnson was just a teenager with dreams of becoming a famous musician himself.

Perlman managed Johnson's ban for three years, but when the ban fell apart, perlman took Johnson under his when and often to teach him the business side of music. And even though problem man is old enough to be as father, Johnson has come to think of him as one of his best friends. But lately, things to felt different.

Johnson spots parliament hunched over a table and makes his way over to say hello. He pulls up a chair, but parliament n barely acknowledges his presence. It's yet another sign that promote isn't telling him something.

With every passing week, pro man has seemed more and more distracted, plus he keeps delaying their trip back home to florida. And he started asking Johnson to charge all of their expenses to johns's credit card. Even though problems ts a multimillionaire, something must be going on.

Johnson needs to know what he is. So when you plank himself down at the other end of permanent table and logs on to one of the business centres, computers, the first thing he googles is the name lew perlman. And immediately an article pops up from a newspaper in florida.

Johnson clicks the link, and as he begins to read his mathues dry, the article says that parliament is accused of defrauding ing hundreds, if not thousands of people, and that he's currently evading law enforcement. Johnson's instinct is not to believe the article, but has he scroll through the comment section? He sees the names of several people he knows, claiming that they were ripped off by prom.

Johnson turns to look at prom. The older man is drawing something on a piece of paper, and he looks deeply focused on what he's doing. Johnson tried to get as a luu.

Yeah, i'm reading an article here in the same Peters work times useless rag. Well, they're saying you're on the run that no one knows where you are. Importers will say anything, the cell papers.

But if there are hundreds of comments from people saying you owe them money, I know some of these people theyve been around the office. They used to come to my shows. Roman ignore res Johnson and keeps drawn.

Lew, why do all these people say you? All the money person holds up his drawn. Does this look real to you? But it's a seal for a german bank. You think IT looks real.

what? What do you mean? Does that look like a real bank seal to you? Would you buy that this was a seal from a bank? I guess what? Why don't worry about IT Johnson looks over at a stack of papers.

Next department to loan application from back of america. No, for real, why do you draw that seal and told you don't worry about IT? Roman gets up, grabs the application and walks over to a fax machine.

Are you sending a forge document to bank of america? Perl and ignorance again, lew, seriously, tell me what's going on? Look, don't overreact.

This is just how you do business on a global scale. You ll see for yourself one day Johnson star as a parliament and disbelief. He may not be a hot shot businessman, but he knows forgery and fraud are not standard practice.

This is criminal behavior as the fact finishes going through parliament turns back to Johnson. Come on, let's go to the beach. sure.

I just need to grab something for my room. I need you out there. Alright, don't be long. Johnson dash is out of the business center and up to his room, but he has no intention of meeting promote on the beach.

He's booking himself on the first flight back to the united states, but as he starts packing his bags, Johnson struggles to understand how we got things so wrong, how he could have missed the science that must have been there, telling him who luu person really was. American scandal is sponsored by auto val. I've bet you heard that IT takes ten thousand hours of practice to become an expert, right? Who came up with that? Welcome, glad.

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From wondering island's y gram and this is american scm.

In the middle and nineties, a middle age entrepreneur named lue prom became one of the most important figures in the music industry. He didn't sing or play music especially well, but he had an uncanned ability to develop and launch music. C lacks.

Roman was the brains behind both the backstreet boys and in sink, two of the most successful and lucrative groups and popular music. He also managed other acts like L, F, O and o, town and help launch the hit T, V show, making the band between alm sales, concert tickets and merchandise permanent groups generated hundreds of millions of dollars. And thanks to his golden touch, pro man had musicians lined up to audition frame and investors begging for a piece of his multifaceted empire in which managing bans was just one peace.

Perlmer's portfolio also included an aviation business, fast food franchise, stakeout and even the male tripping act chip and deals. But then in two thousand seven, ten years after back street boys first taught the charts in the united states, news broke that perlman was arrested for an array of financial crimes. And finally IT was revealed that his vast empire was built on lies. This is episode one. I want .

IT that way.

It's thousand nine hundred and sixty seven in queens, new york. David levin stein stands in a travel a lot with his leather baseball. Gw, positioned at the ready at seventeen years old, live in steam, loves playing baseball with his friends.

And he keeps up a steady pronto of, hey, Better, Better trying to throw off the hitter at the plate. But something is distracting him somewhere over his shoulder. Someone is calling libbin sen's name, tries to ignore IT and squints, and watches a bat swing and miss leave in.

Steen pounds his fist into his glove, two strikes, one more to go and as the picture winds up, leave in seine lands in ready to pounce on any ball hit near um but again someone calls his name this time more urgently the heater knocks the pitch fowl and leaving steam turns to see who's trying so desperately to get his attention when he sees its his neighbor leu person levenson is even more annoyed. Perlman is a couple of years Younger than levenston's. They live in the same complex and sometimes leaving stein asks person to sub in on his paperwork but for the most part, levon stein tries to keep his distance from promo, something awkward and off putting about the boy.

He's pudgie with thick glasses. Where is a pocket protective? Or and as far as leave and steam can tell, only has a few friends, is also obsessed with airplanes and blimps, which leave and steam finds weird.

But perhaps the biggest reason and leaving steam doesn't like talking to poland, is because he lies over time, usually about stupid stuff, like how he gets giant tips on the paper route when leave and sea knows is not true. So leon stein turns back to the game showing just how disinterested he is, what person has to say? But clearly, parliament won't be dissuaded.

Hey, David, I have something for you. Shut up. lue. Can I see i'm in the middle of of a game. Sure, it's fascinating.

Pitch winds up releases and puts the pitch in the dirt. It's ball one. It's an invitation to my bar mizvy.

I'm not going to be able to make IT. You don't even know when IT is. Whenever IT is, i'm busy.

Well, it's not just a barmitzvah. It's also a private concert. What are you talking about? Art gar functional is going to perform. Art gar uncle is one half of the do of Simon and car functional, who are one of the biggest music acts in the country. Even steam turns to face prominent art gar funk, le is going to perform at your barminster is, is my cousin leaving?

Stein stamps his attention back to the game and raises his globe as the hit knocks a pop fly over the inview a drifts. Fw, so he turns back to parnell min and sneers, art car functions, your cousin? Is he your cousin?

In the same way, you've got a hundred dollar tip last week on a paper around, I did get one hundred dollars and already is my cousin. Whatever you say, so serious, you can be sorry to miss IT. I'll take my chances.

At to play the bad swings. And this is for the third strike of the third out, levin stein trust toward home plate. His team, now up to bed but permanent, continues, waving the envelope, yelling that leave in.

Stein forgot his invitation. But levin steyn doesn't turn around. He has no interest in going to party man's barman's pa. And if there's one thing he knows for certain is that there's no chance in hell that art carphone cl is related to geeky luper min. At lue promos, barmston a the surprise guest of honor is our garfunkel le, who is lue, roman's cousin.

And though he does not provide a private concert, when kids in the neighborhood hear that garvan cl was really there, they're impressed. And permanent association with a famous musician earns a tiny bit of cash, and promo likes the way this feels alone in his room, roman begins to imagine himself as a popular rockstar, himself adored and respected, like his cousin, art garden uncle is the kind of life he wants for himself. So while still in high school, promo decides to pursue music.

He joined a band as a rythm, get torst and even play some local shows. But perma is only a moderately talented musician, and he doesn't really look the part, so he transitions to managing the band. And at one point, he even claims that he's close to securing them a record deal.

But his dreams of rocks and role success never materialized. So in the early seventies, at the age eighteen, permanent and roles at queens college, he made as an accounting with the goal of pursuing his other great love, aviation growing up parliament apartment building face. The flushing airport, where he would watch good year blimps take off and land. Roman became obsessed with flying, even through his high school music face.

So when one of his college professors gives the class the assignment to pitch your business, parliaments sees at the opportunity to develop idea for a helicopter commuter company, and he does such a thro job planning, and that parliament professor encourages him to try to make his idea a reality, to raise the start up funds he you'll need. Roman goes to his uncle jack gr, uncle arts father and business manager. Uncle jack tells permanent that he likes the sound of the business and he'd be happy to give him some money, but he doesn't want to be permanent first investor.

He says he'll buy roman's second helicopter, but he was roman to find the money to purchase the first chopper on his own. So para man begins pitching the idea around, and after a string of rejection, he finally convinces a group of investors to purchase two helicopters, at least them, to roman's new company commuter helicopter service in CoOperated. It's his first big break as a businessman, and perlman is eager to make the most of the opportunity.

He hires an old friend from neighborhood called ray side and to help and run things. And together they start building up a customer base. But soon permanent discovers that the cost of maintaining helicopters is significantly more than he anticipated.

Before long, the company finds itself with cash flow issues, and about two years after launching, roman merges his struggling business with a tourism company called island helicopters. The merger is a lifeline for the now only twenty three old promo, and IT allows him to pursue yet another business idea. In the days before electronic money transfers, banks needed to physically send paper checks to clearing houses to be processed, often via airplanes.

So person begins leasing plans to transport checks around the country. The business gets off to a strong start, and by thousand nine hundred and seventy nine, he's ready to expand perlman and sidon start another new company called trans continental airlines travel services. The idea is to least plains, including major jets like boeing seven forty seven, to discount travel companies, to market the company.

Parliament turns to his old friend and neighbor Allen grows. They grew up together in the same queen's apartment building where they both still live and bonded through their mutual love for aviation. Growth now works for good year blames, but more importantly to permanent.

He still has the model playing collection he built as a kid. So one day ross opens his apartment door to find pro man standing there with a camera hanging around his neck. He holds up his car keys and tells gross to grab his model boeing seven forty seven because they're going on a fuel trip.

Ross nods, goes to collect the model. He doesn't bothered protesting or even asking where they're going because he knows there's no point. Perlman is a relentless when you want something. About a half an hour later, the two men arrived at jfk airport.

Perlman leaves grows through the terminal until they reach a large window with a clear view of a runny permanent peers at the view through his camera and and says, this is perfect. Any pulls out a small sticker that says, trans continental airline tells grows to put IT on the model plane. Now grow starts to get curious and asks person what exactly they're doing.

Roman explains. He needs marketing material for his new company, specifically photos of a seven forty seven taking off so he can use them in brochures and ads. Gross wanders out loud if this is a misleading advertising.

Perl man doesn't actually own any planes, but parallel is quick to correct him. He doesn't know any planes yet, and he needs a way to pitch the company. In the meantime, gross isn't sure this is entirely ethical, but perl man tells him is fine.

Companies do this kind of thing all the time. There is a reason why fake IT till you make IT is such a well known phrase. Gross agrees to play along.

Perlman is the more experience ed businessman between them. And if he says this is how it's done, then they must be true. So he takes the sticker and carefully applies IT to the model plane, making short straight.

And he shows that the perl man who loves IT roman enhance the camera to grow as he positions the plan in front of the window, holding IT by the tail and angling IT up about forty five degrees. Then he asks, grows to make sure that looks like the plane is taking off. Grows, looks through the view fighter and tell us, parliament, to move the plane a little to the right angle, IT down slightly.

And after a few adjustments, they get IT right. Grow snap and photos until parliament feels sure they're gotten one that will work. Then they head back home.

A few days later, the photos are developed. They've come out great. They really make IT look like a transcontinental plane is taking off from J, F, K.

And roman uses the photos to place ads and newspapers to make brochures for his new company. Soon he's offering flights from new york to paris on the plane he leases. And by the next year, roman is ready to start yet another business.

In thousand nine hundred and eighty, he partners again with his old friend ray con, to form a blip company called airship enterprises. He loves Allen. Grows from good year to run the company's P.

R. But unlike permanent other aviation businesses, airship is not a travel or delivery company. IT will lease blips out exclusively for marketing purposes as giant flying billboards.

Gross puts together a video, featured the highest quality german made blimps, and soon airship land, a major customer, the blue gene company jordas h. The plan is to fly a blimp and blazing with a jordas h logo over a party the company will host in manhattan battery park. The only problem is that airship doesn't own a blip and doesn't have the money to buy one.

But perl man figures out of work around. He finds an old industrial logging balloon once used to lift number out of forest and a fraction of the cost of an actual living. He then hires metal fabricators to create a frame so IT resembles the abalones shape of a traditional blip, and then he covers the entire thing and gold leaf to give IT extra pazzi. On october eighth thousand nine hundred eighty, Allen grows arrived at the airport and like us, new jersey, excited for the jordas h party in the debut of airship enterprises first blip. But when he sees the derived ble in person cross fuels stomach, sk IT doesn't look anything like the sleek german made blimps.

In the video, he made small and Michael an, and the gold leaf has turned Brown and sun grows, asks pro man if he's worried that jordas h will be upset when they see that their expensive promotional blip looks like groceries words a duty in the sky but carleen waves them off and says, George ash exec came out to inspect the blimp yesterday and said, IT looked fine, is not sure he believes that, but proving seems unconcerned, so the flight will go ahead as planned. And while gross has washed hundreds of blimps launched since he was a child and always gets a thrill from IT today, he feels brand pilot fires up the engines and the blip floats into the air, rises higher and higher. And for a second, great thinks maybe he underestimated promo and his makeshift blip, but then suddenly the blame starts spinning slowly to the right, like a deflating balloon spins and spins until IT hits a pinti and crashed IT to the ground.

Everyone on the airfield stands. They are done. Fortunately, no one has heard, but gross feels ill.

He believed his old friend lue prom when he said they could build something amazing together. Gross trusted prominent business sai and resourcefulness. He even gave up a job of good year to come work with promo.

But now IT seems that airship enterprises, just like its first blind, maybe destined to come crashing back or. American scandal sponsored by dell technology who invite you to shot their black friday event for their lowest Prices of the year. The future is on sale today with limited time deals on select PC like the X P S sixteen that accelerate A I with intel core ultra processors.

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After witnessing the crash of airship enterprises first blip in october ninety eighty, Allen is crushed. He banked his career on his friend leu pro man's company, and now their dream seems to be over before he got off the ground. But moments after the crash, person does not seem all that upset, he tells grows to head back to queens and start tape recording all the news footage of the crash.

Prillie man plans to play kate, the executives at jordas genes, by pointing out that the accident is generating media attention and George ash's names all over the coverage. Parliament is a strong believer that there is no such thing as bad publicity, gross nones, because it's actually not a bad idea and it's not the only way that permanent is planning to capitalize on this apparent setback not long after the crash, pl mn files a claim with his insurance company. He had ensured the blame for several million dollars with the kind of policy you to expect for a traditional high quality.

But when the insurance company sees the backs of the blimp that perlman actually bought the book at the idea of paying out. But parliament is determined to use the insurance to fund his next venture, so he takes the company to court. And as gross watches parliament's maneuvering, part of him wonders if this wasn't the goal all along, as a child grows, could look past prominent and less series of lies and exaggerations.

But gross does not like the idea that his old friend and now business partner, maybe deliberately committing insurance fraud. So when he gets an angling, the parliament is trying to push him out of airship. Gross decides to leave.

Before he can get fired, he quits with a bad taste ous mouth. So with gross gone and the insurance dispute working its way through the core system, perlman plan is forward. He continues to pitch his blind business and his other company, trans continents to airlines, continues to offer discount travel packages.

And improbably, his businesses appeared to be successful. In one thousand nine hundred and eighty two, roman moves out of his parents apartment and into the pint house of a luxury apartment building in queens, new york. Danny trades in his dog for a linking continental stretch limasson and a rose rose all around permanent old neighborhood.

People take notice, some here that is net worth is four hundred million dollars. Others here, seventy two million. However much IT is lue roman has clearly hit IT big, and he's only in his late twice.

His friends and neighbors are proud that a local kid has done good. But to raise side in perl, man's business partner in both trans content, mental airlines and air ship enterprises, the success doesn't add up. Siding has worked with Pearl men for over eight years, and the whole time he's had to work a second job as a shoe sales.

And just to make guns meet at so size, doesn't understand how person is able to afford this lavish new lifestyle. And then one night, as sidon sprays out in the back of his friends link and continental limo buzz on expensive wine, his curiosity gets the best of them. They're on their way back to queens after another multi course meal at Peter lugar, a high and stake house on long island.

Like always, person charged the meal to his business side and leaned over and past person on the shoulder, thanking him again for dinner and acknowledging that he knows this was not a cheap meal. A single stake of Peter lugar cost forty dollars in one hundred eighty two. Society would never be able to afford IT himself, never mind, watched down with a pricy bottle of bordo, but permanent, just grins until side, not to worry about IT side, and smiles back, and then asks, as nonchalant as possible how roman is able to live like this roman drugs, and explains that you have to spend money to make money.

Looked at him, confused, says, of course, he knows the phrase, but he doesn't see how moving into a paint house being driven everywhere in altima is helping parliament make money perl man size and explains that after the jordas h blame crash, his reputation was ruined. He needs investors to keep the air ship enterprise and trans continental going, but no one wants to invest in a loser. So he needs to be seen as a success side.

And not because he can understand that, but IT still doesn't explain how permanent is paying for this life style. His businesses are definitely not bringing in enough. Roman is quiet for a moment and then leaned forward to make signs, swear not to tell anyone what is about to say, side nods, promising.

So perl man whisper that he has fifty thousand dollars worth of charges on his credit card. Science s go wide. Fifty thousand dollars is almost enough to buy a house and prominent spent out on fancy cars and stake dinners.

I can't believe that his friend is willing to go into that much debt to attract investors. He wonders if promise plan will actually work. But slowly, lue person is able to get some friends and family members to invest in trans content into airlines.

And in his new luxury apartment building, pro man meets a neighbor who helped him hatch a plan for reviving his other business, struggling airship enterprises. Film's neighbor is a broker who specializes in so called penny stocks, shares of small companies that typically trade for under five dollars, making them attractive to less wealthy investors. The broker tells prominent that a blip business is perfect for the penny stock market, and the fact that all promo has has an idea and one failed blip isn't important.

The market is red, hot and penny stocks or big business, so perl man dishes airship enterprises and launches a new company, air ship international, in one thousand nine hundred and eighty five. The company goes public, and with the help of his stock broker neighbor roman, raises three million dollars in the initial public offering using the money to buy a real blam pro man, then secures a deal with mcDonald to use this blame for advertising. McDonald keeps the blip up in the air for most of the year, bringing in a steady income that allows proven to rented office on fifth avenue and in one thousand nine hundred and eighty seven, roman gets another windfall when a geria awards in two and a half million in his dispute with the insurance company over the crash of the jordas h blame, ultimately parliament purchase.

This is two more blips and leases them out to major companies like met life and has their bush and gulf oil. Brown man gains a reputation as an innovator in the world of blimps marketing. Meanwhile, parliament keeps building his other business, transcontinental air lines.

He leverages connections through his cousin, art graphical, to charter private jets for musical acts like paul carney and Michael Jackson. He also continues to encourage his friends and family to invest in transcontinental tal, telling them he plans to take the company public and offering them the chance to get in on the ground floor. Roll man tells his investors they'll earn twenty percent interest with an investment of just five thousand dollars and promises them they can withdraw their money at any time.

People seem to be eager to get in on the action, and the man once seen by his friends and neighbors as an awkward outsider is now viewed as a business genius. By the late thousand nine hundred and eighty, roman is flying a private leader jet and owns a six thousand square food vacation home in orlando, ford. But he's also getting restless and looking for his next business opportunity.

He finds IT in one thousand nine hundred eighty nine when a boston based pop group called new kids on the block charter is one of his planes to fly to several of their concerts. Parl man has never heard of new kids on the block, and he surprised that this boyband, most of them still in their teens, can afford a trans continental private jet. So when the group's manager pays for the plane, roman asks about their finances.

He shocked when the manager tells him that between sold out arena shows and merchandise sales, new kids on the block racking in upwards of one hundred million dollars a year. When he hears this, roman's old musical aspirations come flooding back. So he goes to a new kids concert to see for himself what the fuss is about.

Later, when he gets invited to a party at art carphone cle apartment in manhattan, he decides to do some further reconciliation, roman, meaning ers around the crowd, and when he sees graphics, stepped out under the balcony, perl man sees the opportunity to talk him alone. Roman follows his famous cousin onto the balcony, holding a plate loaded up with all dives. Hey, aren't you want any of this? Thanks, you bet.

Help yourself. How is the aviation business? Oh, it's good. Lots of big name client.

You know, clean this ban and new kids on the block. You know, sure, I do. We're on the same label. No kiddin.

I checked out one of their shows and you wouldn't believe how love the screaming at and not just from teen girls, but also their moms. I'd bet they have a following, and they were put together and really smart way. I know each guys.

I don't know a different personalities. Time you got the bad boy, the joy, the boy next store. So they each appeal to different sorts of girls.

Yeah, that tracks with what i've heard about him. What have you heard? Well, that makes sense that they were put in the band based more on their looks.

And their vocal locks were around towners. Not all the guys can say, no, that's interesting. Yeah, the rumor is their producer things on a lot of their records and they don't sing live during their performances. I mean, IT is just a rumor, but you know, it's one I heard wow. I mean, that's true.

And this is how people react to a boyband that can't really saying think how well a boyband who could think would do that would be something I want to go to check on my other guests. But it's been nice catch up loop. Glad to hear the plain business going so well.

Yeah, yeah. Thanks, air, and great talking to youtube. Always interesting to hear about the music is from a real insider.

As ga fancy steps back inside, person gobs down some orders, is mine racing? He can think of any reason why he couldn't put together a group like the new kids on the block. He knows music.

He has a homebase in orlando, which is a city filled with Young aspiring entertainers, and he has the money to invest. So prom decides what his next business venture is going to be. And this time, IT won't be an aviation.

He's gonna start a boyband, and he's going to make IT the biggest pop group in the world. American scandal is sponsored by uncommon goods Spark something uncommon. This holiday was just the right gift from uncommon goods, incredible hand pig gifts for everyone on your list, gifts that Sparky wondered delight.

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By the early one hundred and ninety lue parlement is all in on his boyband idea one thousand nine hundred ninety one, he officially moves his base of Operations to orlando, fla, and bring several of his employees with him from queens. He tells them that they're all in the music business. Now in one thousand nine hundred ninety two, he officially launches tran's continental tal records as a division of trans continental airlines.

Many places an ad in the orlando o. Sentinel looking for a teenage boys who can sing and dance to form a new kids on the block style group. In April ninety ninety two, fourteen old, a claim, becomes the first member of prominent, still unnamed boyband.

A J has been working as an entertainer in orlando for several years, so promo convinces A J S mother denies to use her context to recruit more boys to condition the next two members are cast in quick succession. Nineteen year old hydro and thirteen year old nick Carter, filling the final two spots, though, approves more difficult, but parliament is adamant five part harmonies are key to a boyband success. He also thinks having five different personality types in the group will brought their appeal similar to the new kids formula.

And then finally, by the spring of one thousand nine hundred and ninety three, the group has found its fourth and fifth members, a pair of cousins named Kevin Richardson son and brian literal. They also have settled on a name back street boys after the back street flee market in orlando, o. Roman puts his group through a boyband book camp, and every day they spend hours rehearsing roman highers choreographers, singing coaches and touters for the members who are still in high school, the training is full time, so person runs a house where the older boys can live and the bank can rehearse through IT.

All prom man tells them they're like a family. He asked the boys to call him big papa, and he takes them out for meals at their houses around orlando, buying them close and jewelry and throwing them birthday parties. But with parallel e's attention on the backstory, boys airship international begins to by early ninety ninety four, the company posts a four million dollar loss, which causes the stock Prices tag.

Fortunately, transcontinental tal airlines is still bringing in millions of dollars, and permanent still has the trust of his investors, who are excited that trans continental is now getting into the music business. And by the midnight thousand nine hundred ninety, perlman pitches a new opportunity to investors, including even his barber, mark mali in queens. MRI has been cutting permanent hair for years, and that means a lot of Morris that even though prom is a big shot, he still comes from a really shot and flushing for all these haircuts.

That loyalty is part of why merely started investing with film. In the late ninety eight, he put his entire retirement savings into transgenic shares because he believes in prominent transcontinental as moralises ticket to an early retirement. So in the midnight thousand nine hundred nineties, when provin comes by for his usual hairy ict, really is divided the same.

Really spins as chairs toward parliament and patch the bag. Look good to see you take a see rollman hangs up as soon jacket and sits down w's live mark. I can't complain.

What about you having a bin? They are terrific tour in the country right now, seeing at different high schools. And you should see the way the girls go crazy.

It's like beetle mania. I can't wait. See him when they come to new york, i'll bring a buy.

You can cut their hair. You'll be able to say you knew them before they got you. What I have incredible. And there's something else I want to let you win on another ground floor opportunity.

Oh yeah, what's that? So this is only available for current trans mental employees and investors, but we're offering something new. It's called employee investment savings account in either eight percent returns, and that's Better than what you'll get to the bank.

Sounds interesting. Check my inside jacket pocket. There's approaching there rarely stop snipping and reaches into roman suit jacket.

He pulls out a trial brochure. The front features a photo of a seven forty seven taking all from jfk airport. Now most of that about transgender and our plans, which you you are in all about.

But flink to the back, it's an insurance certificate. The layers of london, they're one of the most prestigious insurance companies in the world. They ensure Bruce bring seeing voice, you know? And of course, we're also covered by the face.

So this is a safe investment or rally puts down the brochure and resumes cutting prominent hair. What does some pretty great lue the you have a doubt I can hear in your voice. I've always invested on my savings and a trans content.

And do I mean, I guess I could cash in some of those shares buy into the what's call isa? Look, well, mark, between you need transcontinental is going to go public and so you're going to want to hang onto those shares. But the isa is a great opportunity if there's any way to find some funds to buy and promise you won't regret IT.

Well, I mean, maybe my brother would want to go in. I talk to, I want to help out as many people from the old neighbor. Od is passport.

Well, you know, we appreciate in a few years, half of flushing will be a living in the good life in early retirement. All thanks to you. Well for me, your lips to gods ears.

All right, I think i'm then tell me what you think merely holds up a mirror so roman can check the back of his head. Roman nods approvingly, so rarely brushes them off and unclipped the barber's cloth. But merely his mind is elsewhere.

Thinking about this new investment. He's never heard of an east before. But if person says it's a good opportunity and it's fully insured, rally is gonna find a way in.

Mark morally and his brother end up investing in the employee investment savings account, as do many of prominent other transient mental investors and staff. Helman assures them that a strong rate of return is virtually guaranteed because the plan is ensured by layers of london and protected by the U. S.

government. But behind the scenes, person is burning through cash because it's taking much longer for the backboard to take off. And he expected the group's tour of high schools is proof that they have what IT takes to attract a fan base.

But even so, a record deal remains elusive. The permanent doesn't give up. He reportedly spends three million dollars developing the band. And finally, in one thousand nine hundred and ninety four, two years after a mclean first got cast in the group, drive records indicates they're interested in signing the max three boys drives has had big success with artists like r. Kelly and a tribe called quest.

And when the back street boy shop and drive's officers in manhattan, they're odd by the gold and plant and records on the wall. So is denis mclean A J S. Mother, because A J is still a minor, she's accompanying him to this meeting.

With the drive of executives past two years have been exhAusting. There were times when denise wondered if I would ever pay off, but another here. And if all goes well, there's a record contract in the future.

An assistant leads the group into a conference where dense finds lue roman waiting with a man she's never seen before. Roman introduces the man as candle mitter, the band's lawyer, and denieth is surprised he had no idea the band had a lawyer. Berman says that minner has reviewed the contract from job, and in his expert opinion, this is the best deal the group is going to get.

Mittler passes out the contracts to the band, and denise takes on her mind spinning. SHE isn't prepared to read and evaluate the contract right now. He thought they were just going to meet with the job executives and hera pitch SHE looks over at nick Carter's parents, who also seem caught off guard. A person applauds forward leading the group through the contract, highlighting a few paragraphs he thinks are important.

Some causes him mod to denies, like how permanent is listed as the quote unquote sixth member of the group but SHE doesn't know what standard in a music contract so he doesn't feel comfortable calling IT out and when they've gone through the agreement, pillin looks up at everyone with a smile and denise realizes he's expecting everyone to sign right now. But the niece doesn't feel comfortable with that, and I would do the other parents. Nick Carter's father, bob says he d like to have his own lawyer look over the contract and a flood of relief comes over.

Dennis SHE quickly says he does two. Roman calmly explains that he hired candle bittner to get the best deal for all of the boys, and he looks bob beneath the eye and asks if they trust him. He thought they were all one family.

Denise can't deny that girl man has been succeedin ly generous over the past two years. He's paid every expense to get the boys to this moment. And the truth is he doesn't even know a lawyer to ask.

But bob Carter reiterates that he won't sign anything until his own lawyer has refuted. Roman's calm demeanor suddenly disappearing. He barks angrily that this is the only deal they have. It's either take IT or leave in Denny is her son.

Shoulder tense up, A J turns back and looked at her, asking her, please just sign the contract, reminding her that this is exactly what they've always wanted, a recording deal with a major label, dense looks at a js pleading face, the same one he had when he was six years old, begging her to let him audition for a community theater production. He's been working so hard for so long, and he can't be the reason he doesn't achieve his dreams. So SHE nodes and agrees to sign next to her.

Bob Carter gives in and agrees design as well. The boys break out into cheers. They have a record contract, but as they need signed her name to the paper, SHE still feels uneasy in the past, she's always felt like he could trust, love roman, he is discuss with them every move and business decision, lived up to every promise. But today IT doesn't feel like they're on the same team, feel like they're being railroaded. Denies macie wonders if maybe big power isn't as trustworthy as shit.

Originally thought .

from wondering this is episode one of luco a conman opop for americans can in our next episode, roman's investment in the backstreet boys pays off and he decides to launch a second boy man. But when the group grows suspicious of their managers lavage spending, roman's empire starts to crumble.

If you're enjoying american scandal, you can unlock exclusive seasons on one free plus binge new seasons first, and listen completely and free when you join wander plus in the wander APP apple podcast or specialized. And before you go, tell us about yourself by filling out a survey and wander dot com slash survey, if you'd like to learn more about lue roman, we recommend the book the hit charade by Tyler gray and mad about the boys by brian burns, published by vantage fair. This episode contains reenactments and dramatize details.

And while in most cases we can't know exactly what was all our drama, tizz are based on historical research. American scandal is hosted, edited and executive produced by nee Linda grand for airship audio editing by Christian baroni sound designed by Gabriel cool, music by lenny gram. This episode is written by Austin reckless, edited by ama cord, fact checking by eliza yung Perry, produced by john rey, managing producer Olivia fountain, senior producer andy herman, helped by Stephanie genes. Executive producers are genuine lower packmen, martial lewi and arenal flaring for wondering.

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