Jailed Boy Band Promoter is Told to Repay $300 Million
The creator of the Back Street Boys and ‘N Sync has been ordered to pay $300 million in restitution in a Ponzi scheme in which he reportedly netted more than that amount from investments by individuals and bank loans.
However, most of the money cannot now be found, and it appears doubtful that Lou Pearlman will be able to come up with it while serving a 25-year sentence in the federal fraud case, reports the Associated Press.
Pearlman is being allowed to manage, from prison, his few remaining music acts, and he can potentially earn from 12 cents to $1.15 hourly at a prison job, the news agency notes.
U.S. District Judge Kendall Sharpe apparently hopes that the restitution order may help jump-start Pearlman’s recall of where additional money might be found. He previously said he would reduce Pearlman’s sentence by one month for every $1 million he repays.
Earlier coverage:
ABAJournal.com: “2 Lawyers in Bankruptcy Case Crossfire”
