Grand Old Police Blotter: Bye, Bye, Bye Edition
ORLANDO, Florida (Reuters) - Boy band mogul Lou Pearlman, who launched Backstreet Boys and 'N Sync, was sentenced to 25 years in prison on Wednesday for swindling investors and major U.S. banks out of more than $300 million.
But U.S. District Judge G. Kendall Sharp gave Pearlman the chance to cut his prison time by offering a one-month reprieve for every $1 million in cash he helps a bankruptcy trustee recover for his victims.
Theoretically, Pearlman could cancel his entire 300-month sentence by repaying the $300 million debt.
His lawyer, Fletcher Peacock, said in a written plea that 25 years amounted to a "sentence to death in prison" for the 53-year-old impresario who lived a jet-set life of mansions and luxury cars before the fraud scheme collapsed.
In an audacious two-decade scam, Pearlman admitted in his plea agreement to enticing individuals and banks to invest millions of dollars in two companies which existed only on paper -- Transcontinental Airlines Travel Services Inc and Transcontinental Airlines Inc.
He won investors' confidence with fake financial statements created by a fictitious accounting firm.
During sentencing, Sharp held up a book with letters from Pearlman's victims, saying they included "his family, his close friends and people in their 70s and 80s who have lost their life savings."
No to mention people who have listened to "I Want It That Way."