Pearlman Pleads Guilty To Fraud

The Orlando Business Journal reports that former boy band mogul Lou Pearlman entered a guilty plea Thursday and could spend the next 25 years in prison.

In federal court Thursday, Pearlman admitted to four charges, including investment fraud, money laundering, bank fraud and making false claims during bankruptcy proceedings.

Pearlman admitted Thursday to orchestrating a 10 year scam that deceived private investors and major banks out of more than $300 million.

A judge is expected to sentence Pearlman May 21. He faces up to 25 years in prison and $1 million in fines.

This Saturday, Pearlman's massive $7.1 million lakefront estate in Windermere, Florida will be auctioned off by order of the U.S. Bankruptcy Court.

This isn't the first time Pearlman has been accused of fraud. Both 'N Sync and the Backstreet Boys successfully sued their former manager for stealing millions of dollars and hoarding their profits. Clay Townsend, lawyer for the boy bands announced that Pearlman still owes his clients more then $4 million.