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Lou Pearlman - Backstreet Boys Creator Sentenced To 25 Years In Prison

21 May 2008 18:19:41

* Pearlman Gets 25 Years In Jail. Latest: Boy Band Svengali Lou Pearlman Has Been Sentenced To 25 Years In Jail After Pleading Guilty To Cheating Investors And U.S. Banks Out Of More Than $300 Million (£150 Million). The Man Behind The Backstreet Boys And N' Sync Was Charged With Conspiracy, Money Laundering And Making False Statements During A Bankruptcy Proceeding. He Reached A Plea Deal With Prosecutors In March (08), Which Left Him Facing Up To 25 Years Behind Bars And A $1 Million (£500,000) Fine. As Part Of The Agreement, He Agreed To Work With Federal Agents To Recover As Much Of The $300 Million (£150 Million) He Is Accused Of Stealing. Pearlman Also Acknowledged Setting Up A Fake Accounting Firm To Create Business Documents And Tax Returns For Himself And His Companies And He Admitted Using The Signature Of A Deceased Former Associate To Stall Repayment Bids. The Shamed Businessman Is Suspected Of Defrauding Another $100 Million (£50 Million) From Banks. Pearlman Appeared In A Florida Court On Wednesday (21May08) Morning, When He Was Handed The Full Prison Term By U.S. Judge G. Kendall Sharp. Delivering The Sentence, Sharp Held Up A Book Of Letters From Pearlman's Victims, Noting That His Targets Included His Family, His Close Friends And People In Their 70S And 80S Who Have Lost Their Life Savings. He Added, So The Sympathy Factor Doesn't Run High With The Court. (Mt/Wnwr/Tn) . . Lou Pearlman At The Goldene Kamera Awards (Golden Camera). Axel-Springer-Haus. Berlin, Germany picture

Picture: * PEARLMAN GETS 25 YEARS IN JAIL. LATEST: Boy band svengali LOU PEARLMAN has been sentenced to 25 years in jail after pleading guilty to cheating investors and U.S. banks out of more than $300 million (£150 million). The man behind the Backstreet Boys and N' Sync was charged with conspiracy, money laundering and making false statements during a bankruptcy proceeding. He reached a plea deal with prosecutors in March (08), which left him facing up to 25 years behind bars and a $1 million (£500,000) fine. As part of the agreement, he agreed to work with federal agents to recover as much of the $300 million (£150 million) he is accused of stealing. Pearlman also acknowledged setting up a fake accounting firm to create business documents and tax returns for himself and his companies and he admitted using the signature of a deceased former associate to stall repayment bids. The shamed businessman is suspected of defrauding another $100 million (£50 million) from banks. Pearlman appeared in a Florida court on Wednesday (21May08) morning, when he was handed the full prison term by U.S. Judge G. Kendall Sharp. Delivering the sentence, Sharp held up a book of letters from Pearlman's victims, noting that his targets included his family, his close friends and people in their 70s and 80s who have lost their life savings. He added, So the sympathy factor doesn't run high with the court. (MT/WNWR/TN) . . Lou Pearlman at the Goldene Kamera awards (Golden Camera). Axel-Springer-Haus. Berlin, Germany

Backstreet Boys Creator Sentenced To 25 Years In Prison

Lou Pearlman, the man who created boy bands N'Sync and the Backstreet Boys, has been sentenced to 25 years in prison today.

The pop mogul was charged with swindling friends, investors and banks out of $300 million (£153 million) by encouraging them to invest in two bogus companies for almost two decades.

Pearlman previously pleaded guilty to the charge in March.

Today Judge G Kendall Sharp said he would reduce the prison sentence by one month for every $1 million (£500,000) Pearlman paid back to his victims.

Prosecutors claim that at least 250 individuals lost a total of $200 million (£102 million) while a further 10 financial institutions lost $100 million (£51 million) between them.

Pearlman said in a statement: "Over the past nine months since my arrest, I've come to realise the harm that's been done. I'm truly sorry and I apologise for what's happened."

In handing down the sentence the judge told Pearlman that because family members, close friends and elderly citizens were victims of his scheme, "the sympathy factor doesn't run high with the court".

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