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Investor Lawyers BlogStock Fraud: Fyre Festival Founder to Pay $26M After Guilty Plea, Promoter is Accused of Defrauding Gold Mining Stock Investors, and SEC Prevents Alleged Pump-And-Dump Scam
Fyre Festival Founder Pleads Guilty to Wire Fraud and Must Pay Back Investors
Billy McFarland, the founder of the failed Fyre Festival who pleaded guilty to two counts of wire fraud, must may pay back millions of dollars to investors whom he bilked. In Manhattan federal court, McFarland acknowledged that he received more than $26M in investor funds for the Bahamas festival that promised catered dining, luxury accommodations, and renowned performers. Instead, attendees were greeted with no food or tent accommodations.
Billboard reports that eventually prepackaged sandwiches were served, local musicians performed, and the festival was postponed even though it had already begun. Travelers who headed back home encountered rescheduled and delayed flights. Many festival employees went unpaid.
The FBI arrested McFarland last summer. He has since admitted that he solicited investors using bogus documents touting financial holdings that he didn’t possess.