Lou Pearlman, the man behind popular boy bands ‘N Sync and the Backstreet Boys, is set to plead guilty to a $300m 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 has admitted enticing investors and banks to invest millions of dollars in two companies that “existed only on paper”.
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.
Mr Pearlman has been in an Orlando jail since being returned to Florida in July 2007.