Boy-band mogul Lou Pearlman is losing his lakefront Orlando home and a New Jersey condominium in bankruptcy proceedings, as he faces separate federal charges of defrauding a bank out of $20 million.
A bankruptcy judge Thursday approved the $7.1 million sale of the 9,000-square-foot Orlando home and a $335,000 condominium in Atlantic City, N.J., owned by the man who created the Backstreet Boys and ’N Sync.
Pearlman, 53, remains jailed after being indicted on three counts of bank fraud and single counts of mail and wire fraud for business he did with Evansville, Ind.-based Integra Bank N.A., according to court documents.
Also Thursday, the bankruptcy judge approved the return of $22,467 in deposits Pearlman made toward a November cruise on the Queen Mary 2 and he assigned three lapsing Pearlman life-insurance policies to an investor. Pearlman also will give up eight season tickets for Orlando Magic games.
Pearlman was arrested in June in Indonesia, where he was found staying at a posh hotel under an assumed name.
Florida investigators separately allege that he defrauded more than 1,000 individual investors out of more than $315 million. Several banks say he collectively owes them more than $120 million, according to bankruptcy court documents.