Here is a letter I sent to Ms. Siegel of the SEC and Tim Barker of the Orlando Sentinel on Wednesday, November 05, 2003. I am making this public in hopes of encouraging the federal goverment into taking action. I passed this information to Rip-off Report which resulted in the information being used in the Fox news report of Options Talent Group filing for bankruptcy.
To: email@example.com; firstname.lastname@example.org
Subject: TCT/WILHELMINA SCOUTING NETWORK dba WEBSTYLE NETWORK SCAMS
Gentlemen and Ms. Siegel,
In addition to the blatant CRIMINAL activity now taking place with the just recently 'bankrupted' Transcontinental Talent dba Wilhelmina Scouting Network dba Web Style Network...
Cort Randell, whom Ms. Siegel of the SEC is undoubtedly very familiar with, is back in the game with Lou Pearlman.
It had appeared that Cort, who has gone to jail twice for securities fraud, once with the infamous National Student Marketing in the 70s and again in the 80s, is the credit card guarantor on the new privately held Fashion Rock LLC, which Lou co-owns.
This company's credit card accounts are backed by Harris Credit and Mercantile Credit.
Essentially, the 4 have stripped all the money out of a PUBLIC company, WITHOUT BOARD APPROVAL obviously, and stuck it all in a privately held company they control. They have moved 2-4 million in fees for an upcoming model and actor convention called Fashion Rock Holidayfest, and the $19.95 a month fee that over 100,000 models and actors pay to be on their website
This money will go to pay the costs of the december convention, approx 1 million, and the rest will be kept for profit since they're bankrupting the company that provided the services. The only reason they will hold the convention is the credit card liability if 2000 models and their families charged back if the event didn't take place.
So Lou Pearlman, boy band impressario who has been sued dozens of times, and Cort Randell - twice convicted felon, are all in bed together- STRIPPING ALL THE MONEY FROM A PUBLIC COMPANY AND HIDING IT IN A PRIVATE ONE.
this is larceny of the highest order.
Lastly, the franchises (Ms. Siegel - Transcontinental Talent had 20 franchises close last month but there are still 40+ operating throughout the US and another 10 in China, Russia, ENgland and Australia) are being prevented from offering their service- they CANNOT sell the website to models and actors because they are not allowed to post their information on the site. Also, the company has not paid the franchises their royalties going on 3 months now.
This is fraud. Cort Randell apparently wants to thumb his nose at the SEC a 3rd time to see if you have the guts to send him to jail for the 3rd time in 4 decades.
so far everything I have told you - from the bankruptcy to Lou "resigning" has been correct. this is right too.
here it is in black and white - the chapter 7 filing - no attempt to save the company by filing chapter 11 of course - just close it down and run away with 4 million.
EVERYONE SHOULD KNOW THAT FRANCHISEES ARE VICTIMS TOO.
Lou needs to answer the following:
1) what happens to all the stock options TCT's employees had- are they now worthless?
2) why are you not paying the franchises their 50% share of the monthly 19.95 billing from the over 100,000 customers on the website, especially if you say you never wanted to have anything to do with scouting, which is how 99% of them got onto the site.
3) are you really claiming that your attorneys did not know that the founder of the company, Cort Randell, was one of the most famous, high profile stock frauds in the 1970s - National Student Marketing - it was the Enron of the 1970s. That your ATTORNEYS could not find public information on the FTC website about Ralph Edward Bell? that they could not find PUBLIC information about Alec Defrawy?
Lou knows that half the company knew about Edward's FTC settlement LONG before the merger in September 2002. If half the company knew about it and Edward didn't hide it- in fact he talked openly about it and the mistakes he made, etc.- how could high priced attorneys not know?????
4) why are there still ads up on google and other sites soliciting models and actors? [Type in google.com and enter actor, actors, models, (you may have to hit the enter button a few times to get the ad to appear) but there is still WSN ads for models and actors.]
5) why do your marketing materials still talk about "all the successes we've found" when this company, Fashion Rock LLC is just starting operations now and has never 'found' anyone up to this date-
there is so much more... I will continue to report here. We will go get them. The new Lou Pearlman scam Fashion Rock LLC (the private company that stripped MILLIONS illegally from a public company which then had to declare bankruptcy) is now involved with Cort Randell - legendary fraud king who twice served prison sentences in the 70s and 80s for stock fraud and wire transfers.
Fashion Rock LLC's credit card merchant is Concord Merchant Processor, affiliated with First National Bank - please contact their risk management department and ask them if they know that Lou, who's been sued 100 times, and Cort, a twice convicted felon, are using their good name.
This fraud has got to stop. The franchise owners are victims as much as anyone - they have NO WAY to make money - the HQ hasn't paid them in months - they are being shut out.
Hopefully, between Rip-off Report and the Florida Attorney General you will be able to shut this down before Fashion Rock Holiday Fest.
I will continue to provide derrogatory information on the Lou Pearlman corruption machine in Orlando. For instance, the corruption of Mayor Buddy Dyer and various other city council members.
Finally, Harris Credit Cards is dirty. This part of the fraud is underwritten by Cort's good friend, Carlos @ 703-929-0054. It is time for Harris to clean up their act or go to jail with Cort.
U.S.A. Click here to read other Rip Off Reports on Wilhelmina CLICK HERE to read about Credit Card Scams... find out how to get your money back. *Rip-off Report Investigation provides valuable information. Click here to read other Rip Off Reports on Emodel Click here to read other Rip Off Reports on Trans Continental Talent AKA Options Talent