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| Boy band mogul admits $300m fraud | Boy band mogul admits $300m fraud |
| (10 minutes later) | |
| 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. | 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. | 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. | 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. | The charges carry a maximum of 25 years in prison and a $1m (£506,000) fine. |
| Mr Pearlman, 53, is expected to plead guilty to two charges of conspiracy, money laundering and making false statements during a bankruptcy proceeding. | Mr Pearlman, 53, is expected to plead guilty to two charges of conspiracy, money laundering and making false statements during a bankruptcy proceeding. |
| Plea agreement | Plea agreement |
| According to the 47-page plea agreement, Mr Pearlman has admitted enticing investors and banks to invest millions of dollars in two companies that "existed only on paper". | According to the 47-page plea agreement, Mr Pearlman has admitted enticing investors and banks to invest millions of dollars in two companies that "existed only on paper". |
| The Backstreet Boys were one of Lou Pearlman's acts | |
| Prosecutors counted at least 250 individual victims who lost $200m (£101m), plus 10 financial institutions that lost $100m (£50.6m). | Prosecutors counted at least 250 individual victims who lost $200m (£101m), plus 10 financial institutions that lost $100m (£50.6m). |
| As part of the deal, Mr Pearlman has pledged to help investigators prosecute his accomplices and agreed to help authorities recoup millions of dollars for his victims. | As part of the deal, Mr Pearlman has pledged to help investigators prosecute his accomplices and agreed to help authorities recoup millions of dollars for his victims. |
| He has also agreed to forfeit four cars, including a 2004 Rolls Royce Phantom and two bank cheques totalling $97,000 (£49,000). | He has also agreed to forfeit four cars, including a 2004 Rolls Royce Phantom and two bank cheques totalling $97,000 (£49,000). |
| Mr Pearlman has been in an Orlando jail since being returned to Florida in July 2007. | Mr Pearlman has been in an Orlando jail since being returned to Florida in July 2007. |
| He earned widespread fame in the 1990s for creating successful pop sensations. | He earned widespread fame in the 1990s for creating successful pop sensations. |
| The Backstreet Boys and 'N Sync eventually sued him, claiming he was siphoning large amounts of money from them. The cases were later settled, but the terms were not disclosed. |