Backstreet Boys creator gets 25 years for fraud schemes
Last Updated: Wednesday, May 21, 2008 | 12:00 PM ET
CBC News
Lou Pearlman, shown in Orlando, Fla., in October 2006, was sentenced to 25 years in jail, with time off for money returned. (John Raoux/Associated Press)Lou Pearlman, the producer who created the popular boy bands the Backstreet Boys and 'N Sync was sentenced Wednesday to 25 years in prison.
Pearlman pleaded guilty in March to two counts of conspiracy, money laundering and using false statements in a bankruptcy proceeding.
Several banks and thousands of individual investors may have lost as much as $500 million US in fraudulent investment schemes operated by Pearlman.
The so-called Ponzi schemes involved Trans Continental Airlines, Trans Continental Talent and Trans Continental Records and were uncovered by Florida newspapers.
Pearlman was arrested in Indonesia in June 2007. His businesses all declared bankruptcy.
Pearlman started out in entertainment management with The Chippendales, the male strip act, and the Backstreet Boys were his first music act. They sold 100 million records on Pearlman's record label.
He repeated that success with 'N' Sync, but later boy bands he created, including O-Town, Take-5 and Natural, were not nearly as successful.
As he was achieving fame with the boy bands, Pearlman was losing money on his aviation and other businesses.
Some of his investors in the music business were unpaid, and he also owes money from his involvement with Tag Entertainment, where he was executive producer of the talent show Popstars and movies such as Motocross Kids.
Judge G. Kendall Sharp of Orlando, Fla., told Pearlman he would reduce the 25-year sentence by one month for every $1 million returned to investors.
With files from the Associated Press
