Fyre festival founder ordered to pay $26m back to investors

Billy McFarland, founder of the disastrous Fyre Fest in the Bahamas has been ordered to pay US$26 million back to investors after he pleaded guilty last week to two counts of wire fraud.

The judgement was made in Manhattan federal court on Saturday morning Australian time.

As reported in TMN, the 26-year-old reached out to investors by lying to them and making false statements to a bank and a ticketing company.

Last June he was arrested after an investigation by the FBI.

When the case first went to court four months later he initially pleaded not guilty.

But after a plea bargain was struck this month, he changed his tune.

He will be sentenced on June 12, and faces 8—10 years jail.

Reports are that the budget blew out and he needed to inject millions of dollars, he claimed that the festival would feature top names as Major Lazer, Migos, Disclosure and Blink-182 over two weekends in April and May 2017.

Patrons who shelled out between $1,200 and $100,000 for the promised luxury experience including luxury villas and gourmet food arrived on the island of Exuma to find sub-standard accommodation, food and water.

McFarland has already been sued by some parties involved, and his promotion company forced into Chapter 7 bankruptcy.

Rapper Ja Rule, who helped him promote the festival, was named in some of the class actions. He has denied liability.

When facing court, McFarland said, “I deeply regret my actions, and I apologize to my investors, team, family, and supporters who I let down.”