Boy-band mogul Lou Pearlman helped launch ‘NSync and The Backstreet Boys, but now he’s broke and behind bars after being convicted of defrauding investors out of millions in a Ponzi scheme. How many millions? $300 million…which he’s just been ordered to repay.
AP: Lou Pearlman and federal authorities have finally agreed on how much the former boy band promoter swindled from banks and investors in a decades-long scam: a staggering $300 million.
That’s how much creator of the Backstreet Boys and ‘N Sync will have to repay, at a minimum, for restitution on the fraud conviction for which he’s serving a 25-year prison sentence…
Attorneys from both sides, the FBI and FDIC determined Pearlman took $195 million from more than 1,000 people in an alleged savings program promising 6 per cent to 10 per cent returns, and $126.7 million in bogus loans from federally insured banks. Another $70 million was invested by people who thought they were buying shares in companies owned by Pearlman that mostly had no assets. About $95 million was returned to investors over the years, documents show.
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