Former N-Sync and Backstreet Boys manager Lou Perlman has pleaded guilty for money laundering and false statements during a bankruptcy proceeding.
Lou Pearlman is appearing in court Thursday. The information comes from a 47-page plea agreement released Tuesday. Federal prosecutors accuse Pearlman of lying to investors to raise millions of dollars for fake companies.
They say the total loss to investors is estimated at more than $300 million.
Perlman, allegedly defrauded banks to the tune of $120 million and has stolen around $315 from over 1,000 investors, who are anxious to find out if he has the money hidden somewhere. The Backstreet boys are also owed $4 million.
Perlman is currently in jail afterbeing arrested in Indonesia in june 2007.
Inspired by 80′s band New Kids on The Block Perlman decided to make his own clean cut boy band in 1992 with the Backstreet Boys who went on to sell more than 65 million albums and win countless awards, but the band split with Perlman under not so amicable circumstances sueing him in 2005.
Perlman was also accused of inappropriate behavior with former member Nick Carter and was branded a “Pervy paedophile”
