Pop svengali was jailed in 2008 for running a massive illegal Ponzi scheme
Former music manager and producer Lou Pearlman has died at the age of 62.
Inspired by the success of New Kids On The Block, in the ’90s Pearlman formed and managed two of the most successful boybands of all time: Backstreet Boys and N Sync. He also formed and managed several other pop groups including LFO and O-Town.
However, both Backstreet Boys and N Sync later filed lawsuits against him claiming their contracts were unfair. In 2006, he was accused of running a massive illegal Ponzi investment scheme which racked up debts of around $300 million (£230 million). He pleaded guilty to conspiracy, money laundering and making false statements during a bankruptcy proceeding, and in 2008 was convicted and sentenced to up to 25 years in prison.
He died in prison on Friday (August 19) from an undisclosed illness, People confirmed. His prison sentence of 25 years or 300 months represented one month for every $1 million he owed, but though a judge ruled that he could reduce his sentence by a month for every $1 million he was able to paid back, Pearlman never attempted to reduce his sentence.
Former N Sync member Lance Bass has tweeted about Pearlman’s death, saying: “Word is that #LouPearlman has passed away. He might not have been a stand up businessman , but I wouldn’t be doing what I love today wout his influence. RIP Lou.”