Boy Band Mogul Admits to $300m Fraud

Lou Pearlman, the man behind boy bands 'N Sync and the Backstreet Boys, is set to plead guilty to a $300m (£152m) fraud scheme, prosecutors have said.

In a plea agreement, the music mogul has admitted running scams that defrauded investors and major banks for more than 20 years.

Mr Pearlman entered a not guilty plea last year, but is scheduled to reverse that in court in Florida on Thursday.

The charges carry a maximum of 25 years in prison and a $1m (£506,000) fine.

Lou Pearlman, the gregarious mastermind behind boy bands such as 'N Sync and the Backstreet Boys, is now admitting his role in a different kind of choreography: a Ponzi scheme.

Prosecutors released a 47-page plea agreement Tuesday signed by Pearlman in which he admits to running scams that defrauded investors and major banks out of more than $300 million. He is scheduled to plead guilty in Orlando on Thursday to federal charges of conspiracy, money laundering and making false statements during a bankruptcy proceeding.

He has also pledged to help investigators prosecute his accomplices and try to recoup millions of dollars for his victims.

His attorneys did not return a call seeking comment Tuesday.

A federal judge will decide Pearlman's punishment, which could be up to 25 years in prison and $1 million in fines. As part of his agreement, Pearlman must make full restitution to his victims and forfeit money and several vehicles, including a 2004 Rolls Royce Phantom.

Pearlman, 53, earned widespread fame in the 1990s for creating successful pop sensations such as the Backstreet Boys and 'N Sync. The groups eventually sued him, claiming he was siphoning large amounts of money from them. The cases were later settled. The terms were not disclosed.

Pearlman's memorabilia from the boy band era was auctioned off last year in a bankruptcy sale.