NEW YORK—Billy McFarland, the entrepreneur behind the Fyre Festival, which was sold as an ultra-luxurious music event in the Bahamas but collapsed spectacularly in April, leaving behind angry ticket buyers, investors and workers, was arrested by federal agents at his home in Manhattan last Friday and charged with one count of wire fraud.
Federal prosecutors said the charge involves a scheme to defraud investors, which included misrepresenting financial information about McFarland’s company, Fyre Media. His representatives were not immediately available for comment.
Joon H. Kim, acting US attorney for the Southern District of New York, said in a statement: “McFarland allegedly presented fake documents to induce investors to put over a million dollars into his company and the fiasco called the Fyre Festival.” If convicted, McFarland could face a maximum of 20 years in prison, but is likely to receive a lesser sentence.
In addition to the federal charges, McFarland and Ja Rule, his partner in the venture, face more than a dozen lawsuits. Some included accusations that the men and Fyre Media had included fictitious financial information on documents given to prospective investors.
Complaint unsealed
STACEY Richman, a lawyer for Ja Rule, whose real name is Jeffrey Atkins, said he had not been arrested. “Mr. Atkins is not under arrest and we don’t perceive him to be a subject of this investigation,” Richman said.
A criminal complaint unsealed on June 30 detailed the case, which relies heavily on misrepresentations of financial information to people who invested in Fyre Media—whose main business was a web site that let people book celebrities for special events—and a subsidiary, Fyre Festival Llc.