What happened to Lou Pearlman from Netflix’s Dirty Pop: The Boy Band Scam? The disgraced ‘kingmaker’ behind the Backstreet Boys and NSync was jailed for 25 years in 2008

Amjad Ali August 12, 2024

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Whether you’ve watched the docuseries yet, here’s what you need to know about the man behind “one of the longest-running Ponzi schemes in American history”, per Netflix:

Lou Pearlman’s early life

Lou Pearlman poses outside his office’s at Church Street Station in Orlando, Florida, in 2006. Photo: AP Photo

According to People, Pearlman was born on June 19, 1954, and raised in New York City by his parents Hy and Reenie Pearlman. He was also the cousin of American singer Art Garfunkel from the folk rock duo Simon & Garfunkel. Per Forbes, he founded a helicopter taxi service in the 1970s, then got into leasing blimps though his business, Airship International. However it didn’t start off well – the company’s only blimp reportedly crashed soon after take-off in 1980.

How did Lou Pearlman get into the music industry?

Lou Pearlman with Hollywood records’ Jason Jordan in 2000. Photo: AP Photo

Pearlman went on to create a private air charter company called Trans Continental Airlines, which flew musicians around the globe. It was around this time that he met the members of New Kids on the Block and learned that they were grossing around US$100 million a year, writes Vanity Fair. “I just didn’t know who they were and I was just questioning, ‘How could these kids afford an aeroplane?’” Pearlman told ABC News in 2000. “I was told these kids did US$200 million in record sales and US$800 million in touring and merchandising. I was like, ‘I’m in the wrong business.’”

What bands did Lou Pearlman manage?

The Backstreet Boys filed a lawsuit against Lou Pearlman in 1998, the first of his artists to do so. Photo: Reuters

Sure enough, inspired New Kids on the Block’s success, Pearlman decided to make the transition to the music business. Under his label Trans Continental Records, he launched its first boy band, the Backstreet Boys, who of course went on to become a huge success. Pearlman then started funding and managing NSync, as well as O-Town, LFO, Natural, Take 5, Marshall Dyllon, US5, Solid HarmoniE and Innosense, as noted by People. Per the outlet, he also managed artists including Aaron Carter, Jordan Knight, Smilez & Southstar and C-Note.

How much did Lou Pearlman steal?

In 1998, the Backstreet Boys were the first to take legal action against Pearlman, according to People, claiming that they had only received US$300,000 since 1993 while Pearlman had pocketed US$10 million. NSync members were the next to come forward with a lawsuit, and Pearlman was let go as their manager, adds the source. Several other artists filed lawsuits against Pearlman, but his legal issues reportedly peaked in 2006, when it was revealed that he was part of a long-running Ponzi scheme and had defrauded investors out of at least US$300 million.

How many years in prison did Lou Pearlman get?

Lou Perlman and singer Aaron Carter pictured at the 6th Annual TJ Martell Family’ Day Indoor Carnival Benefit at Cipriani’s Fifth Avenue in 2005, in New York. Photo: Getty Images

As reported by MSNBC, Pearlman was sentenced in 2008 to 25 years in prison for the US$300 million Ponzi scheme. After his arrest, a Vanity Fair article reported that it wasn’t just the investors who were the victims, as there were also allegations of his inappropriate behaviour towards some of the young men he worked with.

“I would absolutely say the guy was a sexual predator. All the talent knew what Lou’s game was. If they say no, they’re lying to you,” Steve Mooney, Pearlman’s former assistant, told the publication.

Per People, Pearlman was never charged for these allegations.