Crist Turned Blind Eye To Pearlman Fraud: Suit

Law360, New York (December 31, 2008, 12:00 AM EST) -- Investors have sued Florida Gov. Charlie Crist and state financial regulators for allegedly failing to investigate a $300 million Ponzi scheme by band promoter Lou Pearlman.

The suit, filed Monday in the Circuit Court of Hillsborough County, Fla., alleges that Crist, who served as Florida's attorney general from 2002 to 2006, did not promptly investigate the scheme because he received a $12,000 campaign contribution from Pearlman.

Crist knew of Pearlman's scheme as early as 2002, according to the suit. State regulators did not sue Pearlman until...
To view the full article, register now.