Pearlman arrested, charged with bank fraud
EmptyORLANDO -- Boy band mogul Lou Pearlman was arrested in an Indonesian hotel early Thursday, turned over to U.S. law enforcement officials and flown to Guam to appear before a judge there, authorities said.
Pearlman was charged with one felony count of bank fraud.
"We expect that he will be returned to Florida," said Steve Cole, a spokesman for the U.S. Attorney's Office in Tampa.
Pearlman allegedly defrauded about 1,000 investors of more than $315 million by selling for years a bogus savings account plan, then using their money to cover his losses in other businesses. Banks are hounding him and his companies for more than $120 million, according to court documents.
Pearlman conjured multiplatinum success by piecing together boy bands such as the Backstreet Boys and 'N Sync in the 1990s.
He hadn't been seen or heard from in months, nor had he responded to multiple subpoenas.
Creditors liquidated Pearlman's assets at an auction Tuesday in Orlando. Proceeds from the sale were to pay off his considerable debt, though authorities were still trying to put the whole picture together.