Music mogul Lou Pearlman, who created and promoted the Backstreet Boys and 'N Sync, was sentenced to 25 years behind bars after pleading guilty to federal charges of money fraud, conspiracy and false statements he made during a bankruptcy proceeding.

However, Pearlman was given the chance to reduce his sentence by one month for each $1 million (out of the $300 million he allegedly stole) he would return to the investors, Federal Judge G. Kendall Sharp said. This means Pearlman could avoid jail altogether if he manages to give the money back.

"I'm most concerned for the investors, even more so than the institutions," Sharp said.

The sentencing followed a lengthy fraud case in a federal Orlando, Florida, courthouse, with the impresario admitting he sold worthless stock, used a non-existing firm, fictitious financiers from overseas and the signature of a deceased corporate officer in order to defraud investors and banks of over $300 million.

Prosecutors counted at least 250 individual victims who lost a total of $200 million plus 10 financial institutions that lost $100 million.

Pearlman's scam victims included "his family, his close friends and people in their 70s and 80s who have lost their life savings", the judge said.

"So the sympathy factor doesn't run high with the court," he added.

The 53-year-old was presented with the charges, which were detailed in a 28-page long complaint, last summer.

Pearlman, who fled the country in January 2007 with the creditors were on his tail, but was tracked down by the FBI and arrested in July, expressed his regrets in a statement saying, "Over the past nine months since my arrest, I've come to realize the harm that's been done. I'm truly sorry and I apologize for what's happened."