Boy Band Mogul To Admit to 300million Dollar Scam

Music mogul and former Backstreet Boys and N’Sync manager, Lou Pearlman, is set to plead guilty in court to a massive $300million scam.

Prosecutors have revealed that the 53-year-old, who has been in custody since last July, will enter a plea confirming his involvement in a number of scams where he defrauded banks and major investors over more than two decades.

Pearlman persuaded investors and banks to invest millions into two bogus companies that ultimately didn’t even exist.

When the case is heard in a Florida court tomorrow (March 6), Pearlman will plead guilty to two counts of conspiracy as well as money laundering and making false statements. This will mark a complete turn around from last year when he pleaded not guilty.

Around 250 individuals have been affected by his scheming to the sum of $200m, while a further 10 financial companies lost out on $100m, reports the BBC.

The lengthy plea is 47 pages long and in it Pearlman has promised to help investigators by naming accomplices and helping to recoup some of the money to victims.