May
2013
Thursday, May 22, 2008
Jim Leusner and Willoughby Mariano, Orlando Sentinel, 
Submitted by: Editor

Pearlman Sentenced: A Mogul’s Fall From Grace

Facing 25 years in prison for his financial crimes, boy-band mogul Lou Pearlman now knows what he has to do: Find money -- millions of dollars -- to help out the little guys and the retirees financially and emotionally devastated by his investment schemes. Senior U.S. District Judge G. Kendall Sharp sent that message loud and clear Wednesday in Orlando, offering to reduce Pearlman's sentence by one month for every million dollars he recovers. Sharp called it "the keys to your jail cell."

 

In an interview after the hearing, the judge also made it clear that Pearlman, the 53-year-old creator of the Backstreet Boys and 'N Sync, has done little to help recover any money.

"He hasn't divulged one cent to the government as far as I know," Sharp told the Orlando Sentinel. "If it's going to happen, that incentive will make it happen. Otherwise, he'll just wait it out in prison and spend it at age 78."

Sharp made the unusual offer during a 47-minute hearing punctuated with emotion, gasps and applause from angry investors seeking justice -- and the maximum term allowed.

"The emotional part will go on forever," postal worker Marie Weber told the court, saying that she and her husband are forced to work two jobs each to make up for $606,000 in retirement savings lost to Pearlman. "We have been robbed by this man of everything we have."

Posted by on 05/22/08 at 09:54 PM •  (0) Comments

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