The SEC announced on Tuesday that Fyre Festival founder Billy McFarland, two of his companies, a former senior executive, and a former contractor have agreed to settle SEC charges of defrauding more than 100 investors out of $27.4 million. Fyre Festival, promoted as a “life-changing,” luxury music festival in the Bahamas, is now infamous for collapsing into chaos on its inaugural weekend. The SEC alleged that McFarland lied to investors by inflating his success and the success of his companies, including by sending a doctored brokerage account statement which overstated his personal stock holdings over 1,000-fold. Allegedly, McFarland also fabricated sales and falsely told investors he secured event cancellation insurance.
McFarland has admitted the SEC’s allegations. He also agreed to disgorgement of $27.4 million, a lifetime bar from serving as a corporate officer or director, and to be deemed satisfied by a forfeiture order entered against him in a related criminal case.
What do you think? Did McFarland get what he deserves?
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