Jul 16, 2008 9:58 am US/Central
Jailed Boy Band Creator To Pay Fraud Victims $300M
ORLANDO, Fla. (AP) ―
Former boy band promoter Lou Pearlman will have to repay victims of his decades-long investment fraud at least $300 million in restitution.
A federal judge on Wednesday asked lawyers to draw up the order for his approval.
It's unclear whether the creator of the Backstreet Boys and 'N Sync will be able to raise those funds while behind bars. He's serving a 25-year sentence on federal fraud charges.
Prosecutors also wanted U.S District Judge G. Kendall Sharpe to tack on interest, making the repayment $424 million. Pearlman's defense says that's unfair because the money was never invested. The judge said he'd make a decision after Pearlman returns at least some of the principal.
Pearlman pleaded guilty in March to two counts of conspiracy and single counts of money laundering and presenting a false claim in bankruptcy court.
Prosecutors say Pearlman scammed individuals out of an estimated $200 million, and banks out of another $100 million.
U.S. District Judge G. Kendall Sharp has said that many victims were Pearlman's relatives, friends and retirees in their 70s or 80s who lost everything.
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