Boy Band Creator Owes Millions admin Wednesday, July 16, 2008 The Studio Poor, poor Lou! The creator of late 90’s hottest boy groups N-Sync and the Backstreet Boys was convicted of fraud in 2007 and is now serving a 25 year sentence. He has now been ordered to pay a minimum of $300 million to several banks and investors. Lou Pearlman spent years swindling banks and investors and is now regretting it big time! The FBI and the FDIC determined that Pearlman took over $195 million from over 1,000 people in alleged savings programs promising a 6 to 10 percent return on their investments. He also took $170 million in bogus loans from federally insured banks. But documents do show that Pearlman has paid back $95 million to investors. U.S. District Judge G. Kendall Sharpe has ordered that investors be repaid first. Afterwards, banks will be paid. Several attorneys representing each investor argued that Pearlman should pay back with a higher interest rate. But the judge says he wants the investors to be punished for making a bad decision by thinking Pearlman was worth multi-millions. The judge finally reserved the judgement regarding the interest and decided that it was unfair to charge Pearlman the high rates he promised investors due to their poor judgement. Pearlman is currently serving his sentence in the Orange County, Florida jail. But he will soon be transferred to a undetermined facility.(Source)