Fyre Festival Organizer Pleads Guilty to Misleading Investors

Fyre Festival Organizer Pleads Guilty to Misleading Investors

According to NPR, McFarland admitted to lying to Fyre Festival backers, saying, "I grossly underestimated the resources that would be necessary to hold an event of this magnitude".

Prosecutors said McFarland misrepresented the Fyre Festival to investors to secure money for the event, claiming that investors would have the rights to payouts from event cancellation insurance policies "when, in reality, no event cancellation insurance policies had been executed for the festival".

According to the United States Department of Justice, McFarland repeatedly lied to investors about Fyre Media's revenue and income, and manipulated the company's financial statements. He was arrested previous year after what he touted as "the cultural experience of the decade" in the Bahamas turned out to be a huge, disorganized mess of epic proportions. Remember when he announced he was going to make it up to ticket holders by having another Fyre Festival in 2018?

"In order to procure these investments, McFarland provided materially false information", the office said past year.

The attendees didn't get promised music headliners, gourmet meals, luxury rooms, and beach parties, and instead couldn't even find adequate bathroom facilities, suitable accommodations, or edible food, the Daily News said. Customers lashed out on social media with the hashtag #fyrefraud.

That underestimation and the fact that the organiser admitted to defrauding some 80 investors and a ticket broker out of $26 million means he could face up to a decade behind bars.

A lawsuit filed in Los Angeles called the festival "nothing more than a get-rich-quick scam". Partiers then found themselves stranded on the island with little food or water, and, at times, there was no electricity. As part of his plea, he agreed to a forfeiture order of $26 million.

USA attorney Geoffrey Berman said, "As he admitted today, William McFarland tendered fake documents to induce investors and a ticket vendor to put more than $26 million into his company and the disastrous Fyre Festival".

The Fyre Media chief will be sentenced on June 21st by a federal judge.

McFarland is free on bail and living with his parents in New Jersey.

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