p2pnet news | Crime:- Boy-band promoter-cum-conman Lou Pearlman, the face behind Backstreet Boys and ‘N Sync, has “agreed” to plead guilty to conspiracy, money laundering and bank fraud charges and said he’ll “aid investigators” for a possible sentence reduction.

He’s accused of, “bilking investors out of close to $200 million by selling worthless stock in sham companies that ‘existed only on paper’ and acquiring another $140 million in bank loans with the help of bogus financial statements and tax returns supplied by a nonexistent accounting firm staffed with fictitious colleagues,” says E! News.

But, “Pearlman could get a break come sentencing time if he cooperates fully with prosecutors, bankruptcy trustees, FBI, IRS and other federal and state regulators looking to put the squeeze on a number of unnamed coconspirators, helps them track down millions in assets and makes $200 million in restitution to individual investors and banks,”

He’s also “agreed” to forfeit goodies seized last year after he fled the country, “including a 2004 Cadillac Escalade, a 2004 Rolls Royce Phantom, a 2006 Cadillac limousine and a $72,000 check from Bank of America,” says the story.

Pearlman, 53, also admitted signing documents with the name of a dead man and creating a fake seal for a fake German bank to shore up his companies’ image, says the Guardian, continuing:

“Prosecutors counted at least 250 individual victims who lost $200 million, plus 10 financial institutions that lost $100 million, according to the deal.”

Backstreet Boys lawyer Clay Townsend says Perlman owes the band over $4 million, says NME, adding:

“He was arrested in a hotel in Indonesia in June 2007 and is currently in jail.”

There’s currently a whole slew of Pearlman items on eBay.

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Also See:
E! News – Tax credits and porn, March 5, 2008
Guardian – US band creator pleads guilty in $300 mln fraud, March 6, 2008
NME – Former Backstreet Boys ‘N Sync manager pleads guilty, March 4, 2008

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This entry was posted on Friday, March 7th, 2008 at 11:07 am and is filed under Crime, Music. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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