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Remember Lou Pearlman? You know, the pop star mogul who created ‘N Sync and the Backstreet Boys, the guy who was indicted last year on three counts of bank fraud, one count of mail fraud, with another count of wire fraud thrown in for good measure?
The man allegedly swindled some $300 million from investors, including $28.5 from St. Paul-based American Bank. (For the full account, peep Peter S. Scholtes’s detailed story from last year here.)
This morning in Orlando, the doughy gent was sentenced to a quarter century in federal prison. “I’m truly sorry to those I victimized,” he reportedly told the judge. “I’m sorry to those I victimized. I’m working hard to recover whatever money I can. I’m truly sorry. I apologize for what happened.”
Pearlman was also charged with two counts of spawning shitty bands, though those charges were later dismissed.
Channel 2 WESH out of Orlando has the story.
Posted by Matt Snyders at May 22, 2008 2:09 PM
« Husker Du live in 1981 (MP3s) | Main | Your summer of awesomeness awaits, milady »
Has anyone made the obvious joke: "What, they couldn't prosecute him for creating ‘N Sync and the Backstreet Boys? Is this like getting Al Capone for tax evasion instead of his real crimes?"
No? OK, I'll be that guy.
Posted by: Jeff Shaw at May 22, 2008 3:42 PM
It seems an extremely harsh sentence until one looks at the amount of money involved. The federal sentencing guidelines are based on a point system. The more points you accrue, the more time you are likely to do. The same exact crimes with a total loss to investors of $100,000 would have likely resulted in a sentence of maybe 24 to 48 months. However, once you rise into the hundreds of millions of dollars, the sentencing guidelines dictate a long prison term.
Jonathan Richards
Posted by: Jonathan Richards at May 25, 2008 9:10 AM