Lou Pearlman Loses Two Homes In Bankruptcy Case.

10-09-2007 21:01

Lou Pearlman Loses Two Homes In Bankruptcy Case....

A bankruptcy judge has approved the sale of boy band svengali Lou Pearlman's homes in Orlando, Florida and Atlantic City, New Jersey.The 53-year-old former manager of Backstreet Boys and 'N Sync lost his $7.1 million (£3.55 million) Orlando property and his $335,000 (£167,500) Atlantic City condominium in Thursday's (06Sep07) ruling.Pearlman is currently in jail after being indicted on three counts of bank fraud and separate counts of mail and wire fraud. At a July (07) hearing, a not guilty plea was submitted on his behalf after he refused to enter a plea.

A lawsuit filed in Florida alleges Pearlman manage to secure bank loans of $20 million (£10 million) using papers from a fictional accounting firm.Several banks claim Pearlman collectively owes them over $120 million (£60 million), and Florida officials believe he defrauded over 1,000 investors out of more than $315 million (£157.5 million).Pearlman faces 130 years in prison and a $3 million (£1.5 million) fine if convicted of all charges in the federal indictment.