Boy band creator arrested

2007-06-15 15:47

Boy band mogul Lou Pearlman, who created the boy bands Backstreet Boys and 'N SYNC, faces a federal charge of bank fraud. (AP)

Orlando - Boy band mogul Lou Pearlman was arrested in an Indonesian hotel early on Thursday morning, turned over to US authorities and flown to Guam to appear before a judge there, officials said.

Pearlman was charged with one felony count of bank fraud.

"We expect that he will be returned to Florida," said Steve Cole, a spokesperson for the US Attorney's Office in Tampa.

Pearlman allegedly defrauded about 1 000 investors of more than $315m 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 $120m, according to court documents.

- AP