ORLANDO, Fla. -- Accused con man Lou Pearlman is dropping his legal battle and will plead guilty to fraud. Pearlman first gained fame by promoting boy bands. Then he was arrested by the FBI halfway across the world.

The case against Pearlman is two-fold. He's accused of overestimating his company's worth to get millions in loans. He's also accused of bilking investors in a savings plan out of hundreds of millions of dollars.

The U.S. Attorney is not releasing a lot of details about the hearing set for Thursday morning, but hundreds of investors who filed class action suits against Pearlman are hoping the plea deal will trigger more evidence for their cases and help them find the missing millions.

Pearlman is accused of swindling banks and investors out of more than $400 million. So far, he's only been charged criminally with bank fraud, but more than 200 people who invested in Pearlman's savings program, which was not FDIC insured, are suing him.

Pat Ceasar says Pearlman cost him his house and his retirement.

"He said, 'Don't worry about it. Everything is fine. I am going to make a millionaire out of you,'" Ceasar said.

Instead, Ceasar says, Pearlman bilked him out of $300,000.

"It didn't just hurt me personally. It hurt my wife personally. It hurt a lot of people. The kids, the grandchildren," he said.

Investors are watching Pearlman's plea deal closely for what it could do to their case. James Lowry represents 200 of those investors in 20 states and says a guilty plea means Pearlman can no longer plead the fifth.

"If he is in prison and not facing anymore charges or indictments, he is more likely to cooperate with us and with the banks regarding recovery of assets and information on how the scam was put together," Lowry said.

Lowry thinks Pearlman's hiding money overseas, money he hopes to recover for his clients.

"He should spend the rest of his life in prison," Ceasar said. "He doesn't have remorse and seems to be deluded. You describe someone like this as a sociopath, a mastermind criminal."

Sources told Channel 9 Pearlman's sentence will not be discussed at Thursday's hearing. They did say he's agreed to help his victims recover the money they lost.