Boy-Band Producer Brought Back to USA to Face Bankruptcy Charges
Music Producer Lou Pearlman, who created the Backstreet Boys and ‘N Sync is being transferred from Guam to the continental United States to face federal bankruptcy charges. According to bankruptcy court documents, Florida investigators allege that Pearlman defrauded more than 1,000 investors out of more than $315 million in a Ponzi scheme. Several banks say he owes them more than $120 million.
Assets have been liquidated in two bankruptcy cases against Pearlman and his companies. The producer has ignored bankruptcy court actions against for many months.
Pearlman was arrested in Indonesia on a count of bank fraud. He had been expelled from the resort island of Bali after the FBI contacted authorities on the island.