American con artist (born 1991)
William Zervakos McFarland (born December 11, 1991) is an American businessman whose enterprises have been characterized by fraud. He has served time in prison for financial crimes related to Fyre Festival, having defrauded investors of $27.4 million. "Vanity Fair" describes him as "the poster boy for millennial scamming".
In 2013, McFarland founded Magnises, a card-based club targeted at millennials, using $1.5 million of investor funding. He later founded and was CEO of Fyre Media, which developed the Fyre mobile app for booking music talent. In late 2016, along with rapper Ja Rule, McFarland co-founded the Fyre Festival, a "luxury" music festival intended to promote the Fyre app. The event was scheduled to take place April 28–30 and May 5–7, 2017, but was aborted – after attendees had arrived – due to problems with security, food, logistics, understaffing, accommodation, and talent relations.
In May 2017, McFarland and Ja Rule were sued for $100 million in a class-action lawsuit on behalf of Fyre Festival attendees. The following month, McFarland was arrested and charged with wire fraud in Manhattan federal court for his role in the organization of the festival. After pleading guilty to two counts of wire fraud in March 2018, he was sentenced to six years in federal prison. He was released in late March 2022 after serving less than four years.
Early life and education.
McFarland was born in 1991, and was raised in the Short Hills section of Millburn, New Jersey. His parents, Steven and Irene McFarland ("née" Zervakos), are real estate developers. He graduated from the Pingry School in 2010. He then attended Bucknell University, but he dropped out in May of his freshman year.
Career.
After McFarland dropped out of college, he founded the short-lived online advertisement platform Spling, where he served as CEO. TechCrunch described Spling as a content-sharing network, criticizing its similarity to other services which existed at the time.
In August 2013, McFarland seeded payments company Magnises with $1.5 million of investor funding, aiming to create an exclusive "black card" with social perks, such as club membership, targeted at status-oriented millennials in certain big cities. McFarland also launched Fyre Media Inc., the parent company of the Fyre Festival. In a term sheet sent to investors, Fyre Media claimed to be worth $90 million; however, according to authorities, the company only did about $60,000 in business.
Fyre Festival.
McFarland founded Fyre Media and publicized a luxury music festival in the Bahamas, called Fyre Festival, to promote the Fyre music-booking application. The festival, to be held in April 2017, was advertised by a video which included a bevy of Instagram models including Bella Hadid and Emily Ratajkowski who, along with Kendall Jenner, were all expected to be at the festival. However, the festival experienced a number of serious management, administration and misrepresentation issues, and was canceled after guests had begun to arrive at Great Exuma island. Guests were met with tents and pre-packaged sandwiches instead of the lavish villas and meals they were promised. The festival subsequently became the focus of U.S. federal investigations and multiple lawsuits.
McFarland borrowed as much as $7 million in an effort to fund the festival, taking one loan with an effective annualized rate of 120 percent. McFarland defaulted on the loan, and the lender sued.
The controversy around Fyre Festival were detailed in two documentaries in January 2019: Hulu released "Fyre Fraud" directed by Jenner Furst and Julia Willoughby Nason on January 14, and Netflix released "Fyre: The Greatest Party That Never Happened", directed by Chris Smith, on January 18.
Fraud conviction.
On May 1, 2017, Fyre Festival organizers Billy McFarland and Ja Rule were sued for $100 million in a class-action lawsuit in relation to the failed Fyre Festival that left attendees stranded on the island of Great Exuma without basic provisions. In addition to the class-action lawsuit filed in May 2017, 6 federal and 4 individual lawsuits were filed in relation to the scheme. McFarland was arrested by federal agents on June 30, 2017, and charged with wire fraud in relation to Fyre and Fyre Festival. He was released on $300,000 bail on July 1. McFarland faced up to 4 years and 9 months under U.S. sentencing guidelines, according to Assistant U.S. Attorney Kristy Greenberg. She added that McFarland's short but eventful career showed a "pattern of deception" and "overpromising luxury experiences that were not delivered". In July 2017, McFarland was represented by a public defender at a bail hearing after his previous legal team "had not been paid enough to continue to represent him". McFarland later hired the private firm Boies, Schiller &amp; Flexner as representation. While on bail, he committed further fraud with a scheme called "NYC VIP Access" selling tickets to events that had either not been announced or that tickets were unavailable for public purchase to attend, including the Met Gala. Footage of him carrying out this fraud was (inadvertently) recorded and later appeared in Netflix's "Fyre" documentary.
In March 2018, McFarland pleaded guilty to 2 counts of wire fraud in federal court in Manhattan and admitted to using fake documents to attract investors to put more than $26 million into his company. He agreed to forfeit $26 million. On June 12, 2018, McFarland was charged with selling fraudulent tickets to events such as the Met Gala, Burning Man, and Coachella while out on bail.
Incarceration.
On October 11, 2018, McFarland was sentenced to six years in federal prison. During his time in prison, McFarland says he attempted to write a book using voice notes, and create a podcast using a prison phone. He says both of these were not allowed, and therefore he was punished by being put in solitary confinement. In April 2020, during the COVID-19 pandemic, McFarland requested compassionate release from Federal Correctional Institution, Elkton, in Lisbon, Ohio, to avoid contracting the virus, with the reasoning that as an asthmatic he was especially vulnerable to the virus. His request was denied the same month. In July 2020, it was reported that McFarland tested positive for COVID-19 at the facility.
He was released from prison early on March 30, 2022, to be relocated to a halfway house. His time under house arrest ended in September 2022.
Post-incarceration.
In October 2022, McFarland teased in a video on TikTok and YouTube Shorts that he was planning a new business venture called "PYRT", with more details to be announced in November 2022. In an interview with "Vanity Fair" he described it as "virtual immersive decentralized reality". The magazine described it as "Fyre Festival Lite, without the capacity issues". The Government of the Bahamas responded to speculation PYRT may hold events in the country by stating they consider him a "fugitive" and would not endorse any event associated with McFarland.
In April 2023, McFarland announced via Twitter that "Fyre Festival II is finally happening". As of April 2023[ [update]], he had not provided any details, such as musical guests or dates. In August 2023, McFarland announced on TikTok that the "first 100" tickets for Fyre II were on sale for $499, despite still not having a venue, a date, or any musical acts. According to McFarland, the tickets sold out relatively quickly.
On September 9, 2024, McFarland stated Fyre Festival II will happen April 25, 2025 on a private island off the coast of Mexico in the Caribbean.
McFarland was involved with getting hip hop artists to endorse Donald Trump's 2024 campaign for Presidency.
References.
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