Pearlman indicted on fraud charges

8:05 PM, Jun 27, 2007   |    comments
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Orlando, Florida -- A federal grand jury has indicted celebrity investor Louis J. Pearlman,  Acting U.S. Attorney James Klindt announced today.

Pearlman, 53, is charged with three counts of bank fraud, one count of mail fraud and one count of wire fraud.

The indictment claims Pearlman engaged in a scheme to defraud that caused federally insured financial institutions to lose more than $100 million.  The charges relate to three of the loans that were made by   Integra Bank N.A. that totaled almost $20 million.

Pearlman, the creator of the Backstreet Boys and 'N Sync,  was transported from Guam to Clifornia over the weekend and is expected to be brought to Orlando in the next few weeks for his first court appearance.

The U.S. Attorney's Office said that upon conviction each of the bank fraud counts carries a maximum sentence of 30 years in prison and a fine of $1 million.

Pearlman is most famous for forming boy bands in the '90s, but was also involved in airplane charter, real estate, model scouting and restaurant ventures.

Assets have been liquidated in two bankruptcy cases against Pearlman and his companies, and the entertainment mogul has ignored court actions against him for months.

Florida investigators separately allege Pearlman defrauded more than a thousand individual investors out of more than $315 million. Several banks say he collectively owes them more than $120 million.

To read the full indictment, click here.

U.S. Attorney's Office, Associated Press & Tampa Bay's 10 News

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