Lou Pearlman Arrested For Bank Fraud
June 14, 2007 at 11:11 AM (PT)
LOU PEARLMAN, who put together such '90s boy bands at the BACKSTREET BOYS and 'N SYNC and was the principal behind TRANSCONTINENTAL RECORDS, was arrested this morning and charged with one felony count of bank fraud. AP reports he was arrested in an Indonesian hotel, turned over to U.S. law enforcement officials and flown to GUAM to appear before a judge, but STEVE COLE, a spokesman for the U.S. Attorney's Office in TAMPA, said that PEARLMAN is expected to be returned to FLORIDA.
As previously reported by ALL ACCESS (NET NEWS 2/5), PEARLMAN allegedly defrauded about 1,000 investors of more than $315 million by selling a bogus savings account plan and using the money to cover his losses in other businesses. Court documents show that banks are hounding him and his companies for more than $120 million. Creditors liquidated PEARLMAN's assets at an auction in ORLANDO on TUESDAY.
Read the ORLANDO SENTINEL's take on the story here.