Backdoor Backstreet Boys Raid

ORLANDO, Florida (Reuters) - U.S. agents on Thursday raided the home and offices of boy-band impresario Lou Pearlman, known for launching 'N Sync and the Backstreet Boys, as part of a criminal investigation, officials said.

Pearlman has already been sued by the state of Florida for alleged securities fraud involving an employee investment program.

Federal prosecutors and the FBI were investigating "various allegations leveled against Mr. Pearlman and his entities," U.S. Attorney's Office spokesman Steve Cole said.

According to the state lawsuit, Pearlman's companies for 15 years have sold unregistered securities in what was called an "employee investment savings account" program, committing securities fraud by implying the money was safe and insured.

But like a Ponzi scheme, according to the complaint, early investors were paid $118 million in dividends from deposits by more recent investors, while $7 million was paid in sales commissions and $50 million went to Pearlman and two other defendants.

It ain't no lie, if you invested with Pearlman, kiss your money bye-bye-bye...