Pearlman to repay victims

Promoter owes $300 million in restitution

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.

So far investigators have recovered few assets remaining from Pearlman’s former entertainment empire.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading