The former mogul behind NSYNC and The Backstreet Boys has been in prison for a few years after his ponzi scheme unraveled: At the time it was among the largest in history, although it has since been eclipsed many times over by Bernie Madoff.

But Lou Pearlman isn't one to let a minor inconvenience like prison get in the way of his business. Operating from a federal prison cell in Florida, Sweet Lou is managing a southern rock band called Biteboy with collect calls from the prison pay phone. Tyler Gray -- the author of a biography of Mr. Pearlman that I reviewed here -- reports that "Pearlman has also facilitated what could be Biteboy's breakthrough -- a reality-TV series about the group's attempts to become famous, put together by Jonathan Murray, the television producer behind MTV's The Real World."

Lou Pearlman, the airplane entrepreneur turned boy band promoter turned modeling agency con-artist, has been ordered to repay $300 million to investors he bilked in a decade-long Ponzi scheme.

It's been a stunning downfall for Pearlman, who is now serving a 25-year prison sentence. He was the Svengali behind the Backstreet Boys and *NSYNC, but was later sued by both bands, and accused of inappropriate sexual conduct by several former band members, most notably Nick Carter.

Interesting trivia item: Mr. Pearlman is the first cousin of Art Garfunkel. Take a look at this funny video from Saturday Night Live, parodying Mr. Pearlman.

News Corp (NYSE:NWS) today announced that it will revamp its Fox Business Network lineup in response to recent viewership reports showing that Americans would rather undergo a cavity search than watch the shows.

Drawing upon inspiration from its successful Fox Entertainment division, we hear that a number of new programs are under consideration:

• Homer Nose Business -- a "Simpsons" take on making 'd'oh' in the food and beverage industries, with field reporters Apu Nahasapeemapetilon, Jr. and Moe Szyslak.
• 24:00 Stocks -- Kiefer Sutherland hosts a new studio show in which CEOs of tanking corporations are subjected to waterboarding and other amusing non-torture interview techniques in order to extract crucial investor information.
• American Idle --The 'idle rich' report by Paris Hilton, featuring the latest exposés directly from the wellspring of the trickle-down economy.
• Prison Break-- Five-minute updates hosted by Andrew Fastow, Conrad Black and Lou Pearlman, live from their offices in U.S. Federal government facilities.

Lou Pearlman once seemed to possess the secret formula for making millions by putting together popular boy bands that could churn out hits. Most famously, he created the Backstreet Boys and 'NSync, which sold $100 million and $56 million records respectively. By some accounts, the boys didn't get too rich off the deal, but Pearlman did.

But Pearlman's fortunes have long since turned and now he is being held on charges of running a fraudulent savings program. Claims against him run to $500 million. He was arrested in June in Indonesia and indicted by a Federal Grand Jury and the trial is slated to begin next March. Pearlman insists on his innocence. Meantime, allegations that he liked the young male performers for a lot more than their singing and dancing abilities are swirling.

Although Pearlman is no doubt one of 2007's great losers, it is unclear how much money he actually lost this past year. He may have squandered most of it long ago, perhaps keeping his Ponzi savings scheme afloat. If he is found guilty, he could be on the hook for those $500 millions investors lost in his savings plan.

I was too old to appreciate the boy bands Pearlman created and promoted when they were in their heyday. But I can confess that I gained a new found appreciation for the Backstreet Boys -- and even bought a CD for my daughter --not long ago after watching the famous and wonderful Chinese Boys lip-sync to their tune, "I Want It That Way."

Pearlman's success may have been short-lived and no doubt his fortunes are falling fast. But through the wonders of YouTube, the music he helped create will live on.

Be sure to check out other Money Losers of 2007.