LOU, Lou Pearlman, Lou Venturi discussed on Con Artists
York Harbor. The blimp only reached about thirty feet above the ground and immediately began listing to one side. The overheated paint coast helium inside the to expand unevenly, and the entire structure was unsuited for flight. Moments later. The blimp began moving in circles and finally spiraled toward the ground. It crashed into pine trees before it even traversed a mile. The pilots crash landed near A. Dump and while the man lived to tell the tale, the blimp was kaput. It's embarrassing. Crash into a garbage pile made headlines. But the negative press surrounding the incident actually delivered where the blimp failed. Jordache received a huge bump in its publicity and Lou Venturi received a two point five million dollar insurance payout. It was a win win. By the early nineteen, thousand, nine, hundred Lou pearlman considered himself a successful businessman. He had three offices in Manhattan one for each of his aviation companies, and he finally moved out of his parents apartment. He claimed to have made four hundred million dollars by the time he turned twenty four and his spending habits supported the story. Lou ordered lavish dinners bought expensive designer clothing and lived like a multi millionaire. But, in actuality, his businesses were far more modest. Despite being in charge of three aviation companies Lou wasn't bringing in much money. The maintenance costs were astronomical, but Lou would never admit to his financial struggles. Instead he charged his extravagant purchases to his credit cards or added to his tabs that his favorite restaurants, but ultimately Lewis spending at an unsustainable rate in order to keep up. He turned his the demand. Charter Plane Company Trans Come Airways into a Ponzi, scheme, Trans comb used a modest number of helicopters and lease planes for its flights, but lose new adventure. Transcontinental Airlines also called Trans Con was supposed to be big. When you talked about with friends, family and potential investors, he represented it as a booming business for the fleet of jets and record breaking profits. When potential investors asked after his finances loop provided them with professionally audited reports, the proved his claims. However. The accounting firm Lou used to audit. These reports didn't exist. He had invented the firm for the explicit purpose of fooling investors. and. It worked. Lose sales, pitch and fake documents were convincing, and he had investors in trance con, throwing in around five thousand dollars, a share with this fraudulently acquired money, Luke himself and his fledgling business empire afloat. Soon enough. This fraud became his primary source of income. Lou continued this scheme for several years chugging along convinced that something better would fall into his lap. Own someone. And in Nineteen, eighty-five, it happened. With the help of Jerome Rosen a Wall Street stockbroker with the questionable moral compass and a history of fraudulent trading lose company went public as Airship International. By holding an IPO the new company would get an influx of cash. The could be used to buy a new blimp one that would actually fly to get the most money outs if the IPO jerome and his brokerage salt, the stocks using an illegal technique called pump and dump. They hooked clients. Interest in the company by making it look like it was on the verge of something big, thus inflating the cost of the stocks. In reality, the HSIEH's were next to worthless. The company had no capital and no revenue stream. But the tactic worked. In June of one, thousand, nine, hundred, five, the newly established airship internationals, IPO raised a total of three million dollars. Lou Use this money to buy a quality blimp from his old mental Theodore Woolen camp. With a real blimp in his possession, Lou finally secured some honest work for the company. A promotional contract with McDonald's. The IPO may have been conducted under shady circumstances, but it breathes new life into ship international over the next four years, Lou used the company to promote himself and his own interests. With a ship international thriving, Lou found that investors were more willing to believe in him and his other companies they wanted to make money or sure thing, and in their minds loop. Holman was the real deal. This may have been a result of his genial personality Poneman could never sing no two people and always remembered small personal details. This ended up giving him a competitive edge in his cons. Thanks to a cognitive bias. Cold the halo effect. According to the halo effect, our judgment is influence when we need someone with at least one noticeable positive quality, such as their attractiveness or their likeability, because they have one positive quality, we are more likely to perceive them as having a positive qualities, such as intelligence, leadership, ability or trustworthiness. Loop Holman was always perceived as exceedingly friendly as a result, the people he met often so other positive qualities in him. One of these was his business acumen. And since he could point to some success with international people will to willing to trust him with their money for Trans Con Airlines. So Lou channel their enthusiasm into trance con, convincing them that the company was equally successful. And yet trans con was barely doing any at all. By the late nineteen eighty S, it had become nothing more than a front to collect money from investors at this point in his career, Lou found that despite his best intentions, his businesses weren't nearly as profitable as he hoped. However.