BACKSTREET BOYS / 'NSYNC

MANAGER'S PONZI SCHEME

ROCKS BETHESDA CONSTRUCTION

FIRM IN USDOL LAWSUIT

U.S. Department of Labor Seeks Full

Amount of Lost 401(k) Plan Funds

Another Robert Dyer @ Bethesda Row Exclusive!!!

The con-man convict who discovered Justin Timberlake has brought the long arm of the law down on a Bethesda construction company.

Dynasty Construction, headquartered at the legendary Westwood Center II right here in Bethesda (until it folded in 2007), was sued for $775,000 - plus all interest and associated costs - yesterday by the U.S. Department of Labor.

The suit, Solis v. Dynasty Construction, Inc., et al, concerns the 401(k) plan of Dynasty's 19 eligible former employees.

That $775,000, it seems, went *poof* around the time boy band/fake airline mogul Lou Pearlman's personal empire did the same.

The Labor Department accuses Dynasty owner John J. Barrett III of not "adequately or prudently research(ing) the credentials" of Pearlman's pension fund, which turned out to be a Ponzi scheme.

Pearlman is currently in the cooler serving a 25 year sentence. Before his trip to the slammer, he was best known as the flamboyant manager of the Backstreet Boys, 'NSYNC, LFO, O-Town and other groups.

He also starred in the reality show "Making the Band," which documented O-Town from auditions to its ultimate album release.

This case, filed in U.S. District Court for the District of Maryland, could be the trial of the year for Bethesda. The reason I suggest that, is that many of Pearlman's victims claimed that opportunities to meet the Backstreet Boys or 'NSYNC were apparently enough to convince them to invest.

Did Barrett attend such events? Will Justin Timberlake be called to testify in the case? And the biggest question... why in the world would meeting the Backstreet Boys be enough to convince grown adults to sink colossal sums into an investment with no evidence the company even existed?!

Assistant Labor Secretary for Employee Benefits Security (try fitting that on your office door sign) Phyllis C. Borzi has heard enough. "These acts have jeopardized the retirement security of former Dynasty employees by those charged with the responsibility of protecting workers' benefits," she said yesterday. "The Labor Department will not stand for it, and we will take all actions necessary to make sure workers receive their hard-earned benefits."

No trial date has been announced, so stay tuned for details. In the meantime, if this story has you wondering about your own 401(k) plan's administration, you can report any concerns to the DOL's toll-free hotline: 866-444-3272.

Don't forget to follow me on Twitter at @BethesdaRow for all you need to know about what's going on in Bethesda 24/7!