Earlier this month, a Florida state judge appointed a receiver to take control of three Pearlman companies. The state accuses Pearlman of running an investment fraud scheme whereby he collected $95 million from more than 1,000 investors after promising to put money into insured savings accounts with high dividends. The scheme was run though a company that Pearlman is president of, Trans Continental Airlines, with Pearlman promising investors participation in the company's Employee Investment Savings Account program to getting a better of rate of return for their investment.
Instead of investing the money he got, Pearlman allegedly diverted it to other business entities and other purposes.
The FBI confirms to CBS News that they conducted search warrants last week on his home and business in the Orlando area. The warrants were an investigative step looking for documents and other financial information. No arrest warrant has been issued at this time.