Boy band impresario admits guilt

Pearlman fled the United States in early 2007 and was later captured after he was deported from Indonesia.

By JERUSALEM POST STAFF
Lou Pearlman, the gregarious mastermind behind boy bands such as 'N Sync and the Backstreet Boys, is now admitting his role in a different kind of choreography: a Ponzi scheme. Prosecutors released a 47-page plea agreement Tuesday signed by Pearlman in which he admits to running scams that defrauded investors and major banks out of more than $300 million. He is scheduled to plead guilty in Orlando on Thursday to federal charges of conspiracy, money laundering and making false statements during a bankruptcy proceeding. He has also pledged to help investigators prosecute his accomplices and try to recoup millions of dollars for his victims. A federal judge will decide Pearlman's punishment, which could be up to 25 years in prison and $1 million in fines. As part of his agreement, Pearlman must make full restitution to his victims and forfeit money and several vehicles, including a 2004 Rolls Royce Phantom. Pearlman, 53, earned widespread fame in the 1990s for creating successful pop sensations such as the Backstreet Boys and 'N Sync. The groups eventually sued him, claiming he was siphoning large amounts of money from them. The cases were later settled. The terms were not disclosed. Pearlman's memorabilia from the boy band era was auctioned off last year in a bankruptcy sale. Even as the groups played to sold-out crowds, Pearlman was soliciting investors for his schemes. To make them seem legitimate, Pearlman acknowledges he and others created a fictitious airline company, a fake German bank and South Florida accounting firm. Pearlman fled the United States in early 2007 and was later captured after he was deported from Indonesia. At the time, he was apparently trying to create a seal and other documents to make the German bank appear legitimate, the plea agreement states. Pearlman has been in an Orlando jail since being returned to Florida in July 2007.