Lou Pearlman, Creator Of Backstreet Boys And N'Sync, Pleads Guilty To Shady Financial Dealings
No word yet, however, on whether he copped to being a gelatinous skidmark in the underwear of the music business.
Yes, Lou Pearlman, the musical genius behind (some would say literally) some of the world's most famous boy bands, finally agreed to plead guilty to various charges:
The creator of the Backstreet Boys and 'N Sync has agreed to plead guilty to charges he laundered money and made false statements during a bankruptcy proceeding.Â
Boy band creator Lou Pearlman has agreed to plead guilty to money laundering and making false statements.
Lou Pearlman will appear in court Thursday, according to a 47-page plea agreement released Tuesday.
Federal prosecutors accuse Pearlman of lying to investors to raise millions of dollars for fake companies.
They say the total loss to investors is estimated at more than $300 million.
The plea deal says Pearlman will help investigators develop cases and testify against others who helped in his schemes.
Federal prosecutors still plan to seek a significant prison sentence for Pearlman.
Well, that's good. At least he still has a chance to use his talents.
So what exactly did Big Poppa (as he wanted his young proteges to call him) do, besides obviously exist on a diet of chocolate-covered bacon? He fled the country after allegedly bilking investors out of almost $320M in fifteen years, duping people (mostly Florida retirees) in an intricate Ponzi scheme that eventually came crashing down. He fabricated companies for investors to pour money into, he ruined lives with endless lawsuits, and in the end ran off with his tail between his legs when the truth came out. He was eventually busted by the FBI on the island of Bali, where he had registered at a hotel under the alias "A. Incognito Johnson."
As if that were not bad enough, it turns out that Lou, who had begun his empire in the blimp business (you can make up your own gas joke there), had an eye for the boys...not just for their talent, how well they could sing or dance or how nice they looked for the camera, but for his own nefarious purposes. Starstruck young men (and their parents) were duped into falling for his line of bull, only to find themselves sharing more than profits with the rotund Svengali:
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