Former music mogul Lou Pearlman, the man who launched Backstreet Boys and ‘N Sync, was sentenced to 25 years in federal prison after he pleaded guilty to two counts of conspiracy and single counts of money laundering and presenting a false statement during a bankruptcy proceeding.

But Pearlman had the chance to cut his prison time by offering a one-month reprieve for every $1 million in cash he helps a bankruptcy trustee recover for his victims. If he manages to give the money back, he could avoid jail.

He admitted in his plea agreement to enticing numerous persons and banks to invest millions of dollars in two phantom companies, Transcontinental Airlines Travel Services Inc and Transcontinental Airlines Inc. Helped by a fictitious accounting firm, he gave them false financial statements to won their confidence.

Senior US District Judge G. Kendall Sharp said that many victims were Pearlman’s relatives, friends, and people in their 70s and 80s who have lost their life savings. He showed the court letters from Pearlman’s victims.

“So the sympathy factor doesn't run high with the court,” the judge said.

“Over the past nine months since my arrest, I've come to realise the harm that's been done,” Pearlman apologised in a statement to his victims. “I'm truly sorry and I apologise for what's happened.”

The exact amount of restitution owed to victims is still being calculated. A hearing in July will determine the exact amount of restitution owed to victims.

“I'm accepting full responsibility,” Pearlman said in the court plea hearing. Moreover, he promised to help prosecutors to find his co-conspirators and the remaining assets. He said he used the money for different investments and also spent a part of it in “aircraft, living expenses, working capital.”