But When Will They Do Something About That Music?

(iStockphoto)
The FBI is investigating Lou Pearlman, the boy-band manager genius who brought the world the Backstreet Boys and N'Sync. He is under investigation for business dealings not related to those musical groups. (And no, he is not under investigation for crimes against humanity or bad taste for those the music made by those groups.)

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.



  • Robert Hendin On Twitter»

    Robert Hendin is senior producer for "Face the Nation" and a CBS News senior political producer.

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