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On the latest episode of PEOPLE’s Every Day podcast, Lance Bass opened up to host Janine Rubenstein on how having Lou Pearlman as business manager impacted his finances.
“I definitely went through a hard lesson at a young age of getting taken advantage of by our business manager,” says Bass of *NSYNC. “You’re not thinking business when you’re starting at 16. You’re thinking, ‘I’m going to have fun. I’m going to make music and tour the world.”’
According to the 42-year-old singer, he is now making sure his business is always in order. “That‘s one thing that I can always take with me now from that experience is, any deal I do, any business that I create, I just want to make sure that everyone gets a fair deal,” he added.
The American record producer, who was also the creator of Backstreet Boys, was accused in 2006 of running one of the largest and longest-running Ponzi schemes in US history, defrauding investors out of more than $1 billion. After he died while in custody in 2016, he left more than $300 million in debts. Pearlman pled guilty to conspiracy, money laundering, and making false statements during a bankruptcy proceeding.
Reportedly all of the musical acts, but US5, which worked with Pearlman, sued him in federal court for misrepresentation and fraud. The Backstreet Boys filed a lawsuit against Pearlman for unfairly collecting money as both manager and producer. Pearlman was also getting paid as a sixth member of the band.
Aaron Carter, brother of Nick Carter, member of the Backstreet Boys, filed a lawsuit in 2002 accusing Pearlman and Trans Continental of racketeering. All the stars settled all the cases in court.