Pearlman Ordered To Make Nine-Figure Amend$
July 17, 2008 at 5:30 AM (PT)
LOU PEARLMAN, the imprisoned boy-band visionary who bilked a number of banks and private investors out of $300 million, has been ordered to repay the entire sum to his victims -- starting with the unfortunate, unincorporated individuals who had the misfortune of doing "business" with PEARLMAN, reports E! ONLINE.
The 10 banks, including WASHINGTON MUTUAL and BANK OF AMERICA, that unwittingly loaned him money under false pretenses will be the last to collect any restitution, according to the ruling issued WEDNESDAY by U.S. District Judge G. KENDALL SHARP.
"The court feels the institutions were negligent in their loaning practices," SHARP said.
Per court documents, PEARLMAN owes the assorted banks $126.7 million.
The judge declined, however, the prosecution's request to tack $127 million in interest onto that sum, remarking, "It seems you're batting at windmills." All PEARLMAN has given to the government so far has been the "smirk on his face," he added.
But the guy who put the BACKSTREET BOYS and 'N SYNC together does have an incentive to wipe that smirk off his face -- SHARP has allowed that for every $1 million PEARLMAN pays back, he gets a month wiped from his federal prison sentence.