US Bank swindled by prominent music mogul
LOSSES & LAWSUITS
Lou Pearlman was arrested in Indonesia at the beginning of June on one count of bank fraud. He was expelled from the island of Bali after the FBI contacted authorities there, then transferred to US custody and flown to Guam.
The charge comes amid state and federal investigations into Pearlman's businesses based in Orlando. The criminal bank charge focuses on two loans Pearlman received, totalling $19 million, from Integra Bank of Indiana in 2004, according to press reports.
Pearlman allegedly used audited financial statements from an accounting firm known as Cohen & Siegel, and suspicious bank statements allegedly from a company called German Investment Und Finanzberatung GmbH, to help secure the loans.
The prosecution says Cohen & Siegel is a phantom accounting firm and that the financial statements from it are fictional. And while the German company, also known as German Savings, appears to be a real company, the statements allegedly from it are also fictional, the prosecution alleges.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
More EU banks will fail new IRRBB test as rates push upwards
Half of all EU banks could cross outlier threshold for new test of net interest income
Finra head recognises ‘challenges’ for bond transparency drive
Cook says regulators thinking about industry’s operational and liquidity concerns
Why central banks shouldn’t ignore stablecoins
Rapid growth of stablecoins could impair monetary policy transmission
Hedge funds doubt tall tales around UK short-selling review
FCA has never used powers to ban short-selling, but reporting tweaks would be welcome
Cost of bank bail-in rules lower than expected – EBA
MREL pricing manageable for most banks, though troubled firms may struggle to meet targets
Ice Clear Credit may face Esma review as euro CDSs migrate to US
Upgrade in systemic status would depend on extent of migration from UK-based Ice Clear Europe
EU takes steps to avoid India clearing house lockout
Other Asian regulators may also have concerns about extraterritorial reach of Emir 2.2
HKMA preparing prescriptive climate stress test for 2023
Regulator plans granular scenario specifications, considers Pillar 2 capital measures
