Previously, he was convicted of fraud for running a £230 million Ponzi scheme through his Trans Continental companies. He ran away to Indonesia but was captured by the authorities in 2007, and sentenced to 25 years in prison in 2008. The pop music mastermind was sued by every act he represented but one.
During the late nineties, Pearlman was extremely successful after he founded the best-selling band of all time, the Backstreet Boys in Florida. After that he also signed NSYNC, O-Town, LFO, and Innosence, which briefly featured Britney Spears, to his Trans Continental Records label.