US: Music Industry figure to appear in Court today
Lou Pearlman always talked a good game. He was one of the people responsible for the fact that the music industry is driven by marketing not talent, and look where that's got us today. But today it's got him somewhere different - a Florida Court where, other things being equal, he will be sent to jail.
USD300 million. That's the amount that Lou Pearlman will admit to having obtained in a series of frauds ofer a period of 20 years.
Pearlman was arrested in Indonesia last year and returned to the USA where he initially pleaded not guilty. But he has come to a plea bargain that will see him agree to help prosecutors bring cases against those he worked with.
His crimes were, in essence, simple document frauds - and proof that just because someone is a short, fat, middle aged apparently successful and high profile businessman that your due diligence can be skimped.
Pearlman secured loans and other investments into companies "that existed only on paper." There are at least 250 individuals and 10 financial institutions that have lost USD300 between them.
He will plead guilty to sample charges of money laundering, lying in bankruptcy proceedings and conspiracy.
Pearlman has agreed to hand over four cars, including a 2004 Rolls Royce and bankers' drafts amounting to almost USD100,000.
But as to the rest of the money - well, no one knows for sure.
However, his two most successful acts - NSync and Backstreet Boys - sued him several years ago claiming that he was creaming off substantial amounts of their money. The cases were settled in secret.
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