Boy Band Mogul Lou Pearlman Strikes Plea Deal

Lou Pearlman, the creator of the Backstreet Boys and 'N Sync, struck a plea deal Monday in his federal bank fraud case.

Prosecutors said Pearlman secured loans using fake documents and tax returns. But Monday, Pearlman's public defender said the former music producer would plead guilty to a new set of unspecified criminal charges that he and the U.S. district attorney had agreed upon, reported.

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Pearlman, 53, also has agreed to recover any outstanding assets he might have around the world. Former members of Pearlman's inner circle estimate his fortune at $150 million.

Pearlman's arraignment on these new charges was set for Thursday at 9:30 a.m. ET, with a plea change hearing immediately following.

If the judge accepts all of this, Pearlman then will be scheduled for a sentencing hearing, bypassing the original April 1 trial altogether.

Pearlman had faced charges of defrauding a bank out of $20 million. He was 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.

Pearlman is most famous for forming boy bands in the 1990s but also was involved in airplane charter, real estate, model scouting and restaurant ventures. He was accused of fraudulently securing millions in bank loans with documents from a fake accounting firm.

Florida investigators separately alleged that he defrauded more than 1,000 individual investors out of more than $315 million. Several banks said he collectively owes them more than $120 million, according to bankruptcy court documents.

The Associated Press contributed to this report.