1 00:00:02,160 --> 00:00:05,880 In this episode of American Greed, the Fyre Festival. 2 00:00:06,260 --> 00:00:11,680 This glossy promotional video pitches it as the greatest music festival ever. 3 00:00:12,680 --> 00:00:16,500 You know, beautiful models frolicking in the water in the Bahamas. 4 00:00:17,100 --> 00:00:18,340 Fyre Festival. 5 00:00:18,920 --> 00:00:23,800 It's supposed to be like the most insane festival the world has ever seen. 6 00:00:24,380 --> 00:00:30,020 But Fyre Fest is a complete disaster that quickly goes viral. Welcome to Fyre 7 00:00:30,020 --> 00:00:31,020 Festival. 8 00:00:36,930 --> 00:00:42,690 And the mastermind behind it all, 25 -year -old Billy McFarland. 9 00:00:43,130 --> 00:00:47,150 Billy had a lot of obvious talents, but the greatest one was selling himself. 10 00:00:49,290 --> 00:00:55,990 In scam after scam, he defrauded more than 100 of his investors of 11 00:00:55,990 --> 00:00:57,490 $27 million. 12 00:00:58,210 --> 00:01:00,270 He was a serial fraudster. 13 00:01:00,780 --> 00:01:02,560 He's someone with a lot of resources. 14 00:01:02,780 --> 00:01:07,380 He can do either really great things or also really terrible things. 15 00:01:21,060 --> 00:01:23,360 We are just in LAX. 16 00:01:24,480 --> 00:01:27,560 About to go to... Bahamas. 17 00:01:34,690 --> 00:01:41,210 On April 27, 2017, thousands of ticket holders and social media 18 00:01:41,210 --> 00:01:47,170 influencers are flocking to the Fyre Festival, a star -studded music fest. 19 00:01:53,020 --> 00:01:57,360 26 -year -old video producer Amanda Brooks is lured by the promise of 20 00:01:57,360 --> 00:01:59,320 in this promotional video. 21 00:01:59,700 --> 00:02:05,020 A villa, gourmet food, an all -star lineup, even a treasure hunt. 22 00:02:05,660 --> 00:02:12,480 There were millions of dollars of prizes, and you could rent the jet skis 23 00:02:12,480 --> 00:02:16,260 and find the clues, and it sounded like a really fun experience. 24 00:02:16,840 --> 00:02:19,140 But the reality on the ground. 25 00:02:19,740 --> 00:02:22,340 is more like a scene from The Hunger Games. 26 00:02:24,500 --> 00:02:29,540 The first thing we see is people running for tent and fighting over tent. 27 00:02:31,340 --> 00:02:33,900 People spent $10 ,000 to go to this thing. 28 00:02:35,320 --> 00:02:37,480 How could they not have anything set up? 29 00:02:38,340 --> 00:02:40,160 Like, this is not what I signed up for. 30 00:02:41,360 --> 00:02:46,820 In the concert industry, there has never been anything that remotely rivals the 31 00:02:46,820 --> 00:02:48,800 disaster that the Fyre Festival became. 32 00:02:49,770 --> 00:02:55,530 But this fiasco isn't the first for festival organizer Billy McFarland. 33 00:03:05,170 --> 00:03:09,350 Magnusis is the concierge platform that connects millennials with new people, 34 00:03:09,490 --> 00:03:10,530 products, and services. 35 00:03:11,340 --> 00:03:18,020 In 2015, 23 -year -old Billy McFarland is the founder and CEO of a buzzworthy 36 00:03:18,020 --> 00:03:20,340 company called Magnesis. 37 00:03:20,660 --> 00:03:22,720 And Billy had an idea. 38 00:03:22,940 --> 00:03:25,380 What if you could create your own black card? 39 00:03:25,900 --> 00:03:31,460 McFarland and his friends think the American Express black card is the 40 00:03:31,460 --> 00:03:34,840 status symbol. But they don't make enough money to qualify. 41 00:03:35,320 --> 00:03:40,240 So McFarland finds a vendor in China and decides to create his own. 42 00:03:40,890 --> 00:03:46,290 And Billy knew that would appeal to his young friends. Yeah, I'll just put this 43 00:03:46,290 --> 00:03:47,590 on my black card. 44 00:03:48,910 --> 00:03:52,770 But the Magnesis black card isn't a real credit card. 45 00:03:54,570 --> 00:03:59,290 McFarland's company simply takes the magnetic strip from a user's ordinary 46 00:03:59,290 --> 00:04:01,790 credit card and duplicates it. 47 00:04:01,990 --> 00:04:05,630 Cardholders actually link up their real debit and credit card and use their 48 00:04:05,630 --> 00:04:07,250 Magnesis card every day regularly. 49 00:04:07,650 --> 00:04:09,170 It was kind of the... 50 00:04:09,530 --> 00:04:12,750 In my mind, sort of the champion for the fake it till you make it kind of crowd. 51 00:04:14,210 --> 00:04:21,130 For $250 a year, members get a 24 -7 concierge service and access to 52 00:04:21,130 --> 00:04:23,050 exclusive parties and events. 53 00:04:24,790 --> 00:04:29,910 He rented a townhouse, a nice townhouse, and Magnesis cardholders were able to 54 00:04:29,910 --> 00:04:32,690 use this to hang out in at an open bar. 55 00:04:32,910 --> 00:04:34,130 You know, rappers come in. 56 00:04:34,550 --> 00:04:37,450 There's some NBA and NFL players that started using it. 57 00:04:37,740 --> 00:04:42,060 And within months, Billy starts attracting press attention. 58 00:04:43,580 --> 00:04:49,480 McFarland raises $3 million and counts billionaire oil and gas titan Aubrey 59 00:04:49,480 --> 00:04:52,380 McClendon among his early investors. 60 00:04:53,020 --> 00:04:57,580 That was the biggest calling card he could possibly bring out. I've got money 61 00:04:57,580 --> 00:04:59,160 from Aubrey McClendon. Are you in? 62 00:04:59,740 --> 00:05:06,060 McFarland's staff grows to 20. He travels by private plane, drives a 63 00:05:07,200 --> 00:05:11,420 And cements his reputation as one of the city's hottest young entrepreneurs. 64 00:05:12,220 --> 00:05:15,180 He's had a great Magnesis Plus launch party in D .C. 65 00:05:16,100 --> 00:05:21,180 He had a real sense of, I'm a young man going places. And if you didn't know it, 66 00:05:21,200 --> 00:05:25,080 I'll tell you. So we're 20 months in, and we just eclipsed 10 ,000 members 67 00:05:25,080 --> 00:05:26,800 across New York City and Washington, D .C. 68 00:05:27,080 --> 00:05:32,580 But former employees say that McFarland is grossly inflating membership numbers 69 00:05:32,580 --> 00:05:35,340 to make Magnesis appear more successful. 70 00:05:36,170 --> 00:05:38,730 and the business is actually struggling for cash. 71 00:05:39,870 --> 00:05:45,030 Problems with McNeese's really grew as it attempted to grow. They're making 72 00:05:45,030 --> 00:05:48,450 promises, you know, to members, we'll get you a private jet, we'll get you 73 00:05:48,450 --> 00:05:49,450 tickets to Hamilton. 74 00:05:50,730 --> 00:05:56,050 McFarland sells tickets to hit Broadway shows and to A -list concerts like 75 00:05:56,050 --> 00:05:58,830 Beyonce, Adele, and Kanye West. 76 00:05:59,270 --> 00:06:02,770 But McFarland doesn't actually have access. 77 00:06:03,130 --> 00:06:04,710 He's just taking the cash. 78 00:06:05,310 --> 00:06:07,630 and buying scalp seats at premium prices. 79 00:06:08,290 --> 00:06:14,090 Some members receive their tickets, but many do not, and headlines show the 80 00:06:14,090 --> 00:06:15,670 complaints are pouring in. 81 00:06:16,030 --> 00:06:21,350 They started losing a lot of the original members, and so it really 82 00:06:21,350 --> 00:06:24,490 company of failed promises, big dreams, and a little follow -through. 83 00:06:25,790 --> 00:06:32,530 By May 2016, McFarlane appears bored with Magnetis and is looking for his 84 00:06:32,530 --> 00:06:33,530 move. 85 00:06:33,870 --> 00:06:40,590 He starts a new company called Fire Media and touts an app that gives users 86 00:06:40,590 --> 00:06:42,930 simple way to book celebrities for events. 87 00:06:43,470 --> 00:06:48,170 So what he was trying to do is create almost a tender for artists where you 88 00:06:48,170 --> 00:06:50,670 would make an offer and book these shows directly. 89 00:06:50,890 --> 00:06:52,710 Sort of take out that middle man. 90 00:06:53,950 --> 00:06:58,690 And McFarlane's new business partner is rapper Ja Rule. 91 00:06:59,330 --> 00:07:04,230 Well, I'm going to let my partner in crime here, Billy McFarlane, Give you 92 00:07:04,230 --> 00:07:08,470 an introduction of what FIRE is and what it's bringing to the table. 93 00:07:08,770 --> 00:07:13,010 How's it going, guys? So three years ago, I started... Ja Rule, let's just 94 00:07:13,110 --> 00:07:15,450 was no longer at the peak of his career. 95 00:07:15,730 --> 00:07:18,590 I mean, to Ja Rule, Billy looked like the real deal. 96 00:07:19,190 --> 00:07:24,870 I've loved Ja Rule since I was a kid, and I really wanted to book talent for 97 00:07:24,870 --> 00:07:25,930 these small private conferences. 98 00:07:26,210 --> 00:07:32,590 But then seriously, if you're worth $50 million and you can hire Beyonce, 99 00:07:33,560 --> 00:07:34,900 You're going to do that from an app? 100 00:07:35,360 --> 00:07:39,660 Despite the challenges, McFarland does what he does best. 101 00:07:42,620 --> 00:07:47,120 You know, Billy had a lot of obvious talents, but the greatest one was 102 00:07:47,120 --> 00:07:48,120 himself. 103 00:07:48,280 --> 00:07:50,300 And investors line up. 104 00:07:51,100 --> 00:07:54,400 Billy would take money from anybody who was looking for the next big thing. 105 00:07:54,520 --> 00:07:56,420 There's a lot of people like that in Manhattan. 106 00:07:57,600 --> 00:08:01,740 Marketing executive Carola Jayne sees promise in the young McFarland. 107 00:08:02,430 --> 00:08:07,230 Jane is married to a high -profile hedge fund manager and is a savvy investor 108 00:08:07,230 --> 00:08:13,610 herself. She reportedly puts together a $4 million loan to help grow Fire Media. 109 00:08:13,910 --> 00:08:16,210 And McFarland is off and running. 110 00:08:16,570 --> 00:08:21,970 He sets up headquarters in a swanky new office space in Tribeca. With a team of 111 00:08:21,970 --> 00:08:26,630 engineers and designers building the app, McFarland is looking for ways to 112 00:08:26,630 --> 00:08:27,630 promote it. 113 00:08:32,429 --> 00:08:37,890 And he finds inspiration while on vacation in the Bahamas and pitches a 114 00:08:37,890 --> 00:08:40,010 idea to his bartender. 115 00:08:40,429 --> 00:08:46,390 And he's like, tell her, let me ask you a question. What do you think about us 116 00:08:46,390 --> 00:08:47,590 having a music festival here? 117 00:08:50,530 --> 00:08:52,130 When American Greed returns, 118 00:08:53,130 --> 00:08:56,350 Billy McFarlane has a vision of a luxury music festival. 119 00:08:57,390 --> 00:09:01,970 And he hires the world's top supermodels to help him sell it. 120 00:09:02,550 --> 00:09:05,010 We had models flying in, different models. 121 00:09:05,310 --> 00:09:06,990 We had Bella Hadid and all those girls. 122 00:09:22,480 --> 00:09:28,660 In 2016, Billy McFarland is island hopping in the Bahamas when McFarland 123 00:09:28,660 --> 00:09:32,640 his private plane runs dangerously low on fuel. 124 00:09:33,180 --> 00:09:36,220 The pilot makes a pit stop on Norman's Cay. 125 00:09:36,820 --> 00:09:43,800 In the 1970s, the Cay served as a cocaine smuggling hub for Carlos Lader, 126 00:09:43,800 --> 00:09:45,320 associate of Pablo Escobar. 127 00:09:45,780 --> 00:09:51,380 Today, Norman's Cay has just a single airstrip to serve a few dozen residents. 128 00:09:52,620 --> 00:09:58,400 Despite these obvious limitations, McFarlane sees this tiny island as the 129 00:09:58,400 --> 00:10:03,340 perfect spot to stage a huge music festival as a way to promote his new 130 00:10:03,340 --> 00:10:05,160 celebrity booking app. 131 00:10:05,760 --> 00:10:08,580 I'm like Billy. A music festival on Arminsky? 132 00:10:08,800 --> 00:10:13,060 You love to spend, like, a lot of cash just to get that to work. 133 00:10:14,480 --> 00:10:17,200 Delroy Jackson is a bartender on the island. 134 00:10:18,060 --> 00:10:21,560 Billy is like, I'll see you in two weeks. I'm like, yeah, whatever, dude. 135 00:10:22,690 --> 00:10:23,870 Exactly two weeks. 136 00:10:24,070 --> 00:10:28,150 I saw Billy exit on the plane, right? He said, I told you I'd be back. 137 00:10:29,430 --> 00:10:35,690 McFarland is back with his fire media team in tow, including partner Ja Rule. 138 00:10:36,450 --> 00:10:41,510 McFarland doesn't have any experience planning a music festival, but he does 139 00:10:41,510 --> 00:10:44,910 have a vision of the ultimate fantasy experience. 140 00:10:45,590 --> 00:10:50,960 He knew instinctively that if you want to make this app hot, then you must 141 00:10:50,960 --> 00:10:55,420 create some advertising or a message that is hot and sizzling. 142 00:10:56,000 --> 00:11:00,700 And nothing sizzles more than bikini -clad supermodels. 143 00:11:01,740 --> 00:11:05,900 McFarlane shells out more than one and a half million dollars to hire the 144 00:11:05,900 --> 00:11:07,220 biggest names in the business. 145 00:11:07,680 --> 00:11:13,000 Bella Hadid, Emily Ratajkowski, and Alessandra Ambrosio. 146 00:11:13,340 --> 00:11:19,520 I bet he was up. 147 00:11:20,110 --> 00:11:22,270 He said, hey, those are Victoria's Secret models. 148 00:11:22,510 --> 00:11:26,470 See, now we're going to have a music festival, right? But before we had the 149 00:11:26,470 --> 00:11:28,650 festival, we had to do, like, a promotional video. 150 00:11:32,650 --> 00:11:36,310 The money seemed to flow pretty freely. 151 00:11:37,270 --> 00:11:40,810 We spent close to $40 ,000 on the yacht. 152 00:11:41,230 --> 00:11:43,630 He wanted me to photograph him on a jet ski. 153 00:11:44,470 --> 00:11:49,010 And then he says, like, today we're going to go film me swimming with the 154 00:11:49,010 --> 00:11:50,009 sharks. 155 00:11:50,010 --> 00:11:54,270 Like, were we there for a marketing video or were we there to, like, hang 156 00:11:54,270 --> 00:11:55,270 and just have fun? 157 00:11:55,290 --> 00:11:57,830 At night, that's when the party starts. 158 00:11:58,250 --> 00:11:59,990 So, you know, I got to make it happen, right? 159 00:12:03,970 --> 00:12:10,750 I think it was more just like an excited child in a 160 00:12:10,750 --> 00:12:15,810 candy store. I think all of them were very young and had no real experience. 161 00:12:17,450 --> 00:12:21,630 Oren Axe is a graphic designer managing the social media rollout. 162 00:12:22,270 --> 00:12:27,990 On December 12, 2016, Axe launches the campaign on Instagram. 163 00:12:28,570 --> 00:12:34,650 And in a highly coordinated effort, more than 400 influencers, models, athletes, 164 00:12:34,930 --> 00:12:41,870 artists, and actors simultaneously post a mysterious orange tile linked to this 165 00:12:41,870 --> 00:12:42,870 glitzy video. 166 00:12:50,280 --> 00:12:55,700 Among them is model and reality TV star Kendall Jenner, who reportedly has paid 167 00:12:55,700 --> 00:13:02,200 $250 ,000 for a single post that will be seen by her 102 million 168 00:13:02,200 --> 00:13:03,200 followers. 169 00:13:05,460 --> 00:13:09,140 And you're just getting orange after orange after orange, and you're asking 170 00:13:09,140 --> 00:13:10,140 questions. 171 00:13:10,440 --> 00:13:15,380 The offerings range from general admission packages with private villas 172 00:13:15,380 --> 00:13:16,380 $500. 173 00:13:17,080 --> 00:13:21,180 to a luxury yacht experience costing $250 ,000. 174 00:13:21,840 --> 00:13:27,020 This video shown here goes viral, and tickets are selling fast. 175 00:13:28,100 --> 00:13:31,800 It marketed a come frolic with the supermodels lifestyle. 176 00:13:32,500 --> 00:13:34,440 And you don't have to be anybody. 177 00:13:34,700 --> 00:13:36,960 You just have to have the money to do it. 178 00:13:40,280 --> 00:13:43,100 It was an alluring and a powerful message. 179 00:13:43,690 --> 00:13:46,510 And, you know, he got thousands of people who bought tickets. 180 00:13:47,530 --> 00:13:51,790 I'm watching that on the islands of Pablo Escobar. 181 00:13:52,330 --> 00:13:57,690 I'm like, okay, hey, B, you're looking good so far, but Pablo Escobar don't own 182 00:13:57,690 --> 00:13:58,930 this. You're going to get a lawsuit. 183 00:14:01,010 --> 00:14:05,070 McFarlane's associates say he was asked not to mention any connection to drug 184 00:14:05,070 --> 00:14:06,070 smugglers. 185 00:14:07,210 --> 00:14:08,450 And Jackson's right. 186 00:14:08,910 --> 00:14:12,190 Pablo Escobar never actually owned Norman's key. 187 00:14:13,240 --> 00:14:16,000 But why let facts get in the way of a good story? 188 00:14:17,420 --> 00:14:19,920 He said, yeah, don't worry about that, man. 189 00:14:20,420 --> 00:14:24,600 In America, they love the name Pablo Escobar. So once they see Escobar, 190 00:14:24,600 --> 00:14:25,600 going to jump on it. 191 00:14:25,700 --> 00:14:29,180 I'm like, B, all right, that's on you. 192 00:14:32,780 --> 00:14:38,580 Norman's key officials are reportedly not amused by McFarlane's myth -making. 193 00:14:40,970 --> 00:14:45,710 We were immediately kicked off the premises, and then, you know, FIRE was 194 00:14:45,710 --> 00:14:49,550 able to do anything related to the FIRE Festival on that island. 195 00:14:51,970 --> 00:14:54,750 FIRE Festival is just four months away. 196 00:14:55,630 --> 00:14:59,090 McFarland needs to find a new island, and fast. 197 00:15:00,970 --> 00:15:04,070 You've got to remember, most people don't plan their own wedding in four 198 00:15:04,190 --> 00:15:08,530 And so to anyone involved with music production, like, you would know that 199 00:15:08,530 --> 00:15:09,670 you're not going to pull this off. 200 00:15:12,750 --> 00:15:19,370 When American Greed returns, McFarland has sold a fantasy and reality bites 201 00:15:19,370 --> 00:15:25,390 back. Billy was warned point blank. You are killing your brand if you sell 202 00:15:25,390 --> 00:15:26,690 something that doesn't exist. 203 00:15:27,390 --> 00:15:29,370 And yet that's exactly what he did. 204 00:15:45,040 --> 00:15:50,800 In the spring of 2017, this video promotes a paradise of gourmet food, 205 00:15:51,320 --> 00:15:56,340 villas, and supermodels, all on a private island in the Bahamas. 206 00:15:58,460 --> 00:16:04,180 From a marketing standpoint, the Fyre Festival is a stroke of genius and 207 00:16:04,180 --> 00:16:06,000 generating big buzz. 208 00:16:06,380 --> 00:16:09,540 But organizer Billy McFarlane has a huge problem. 209 00:16:09,840 --> 00:16:11,320 He has no island. 210 00:16:13,070 --> 00:16:17,750 He was just stunningly ignorant of what it would take to make his promises a 211 00:16:17,750 --> 00:16:24,290 reality. After nearly two months of searching, McFarland finds a spot on 212 00:16:24,290 --> 00:16:28,210 Exuma. But Great Exuma is not a remote or private island. 213 00:16:28,590 --> 00:16:34,330 And the festival site is an abandoned resort development full of roads to 214 00:16:34,330 --> 00:16:35,330 nowhere. 215 00:16:35,630 --> 00:16:37,950 McFarland doesn't announce the island change. 216 00:16:38,270 --> 00:16:41,230 He just renames it Fire Key. 217 00:16:41,960 --> 00:16:48,480 With no infrastructure and no villas, McFarland will need to build Fire Key 218 00:16:48,480 --> 00:16:51,080 the ground up in a mere two months. 219 00:16:51,560 --> 00:16:57,020 He thought it would somehow happen because he imagined it. In fact, they 220 00:16:57,020 --> 00:17:01,360 the two largest contractors who do this type of thing. And Billy and his guys 221 00:17:01,360 --> 00:17:03,320 were like, $12 million? 222 00:17:03,660 --> 00:17:06,420 You're crazy. This can be done for $500 ,000. 223 00:17:07,020 --> 00:17:09,060 And I talked to people in the business. 224 00:17:09,440 --> 00:17:12,859 Crows who've been doing this for decades, who go back to Woodstock, who 225 00:17:12,859 --> 00:17:15,780 like, this kid had no idea. 226 00:17:18,200 --> 00:17:23,400 The fest is scheduled for the same weekend as the annual regatta, Exuma's 227 00:17:23,400 --> 00:17:24,400 biggest holiday. 228 00:17:24,640 --> 00:17:27,839 And all of the hotels are already sold out. 229 00:17:28,119 --> 00:17:31,440 They all asked the same question. So where are these villas? 230 00:17:31,900 --> 00:17:34,840 And Billy said, well, you're going to provide them. 231 00:17:35,080 --> 00:17:38,420 Nobody had any villas and everybody thought everybody else was going to 232 00:17:38,420 --> 00:17:39,420 them. 233 00:17:40,040 --> 00:17:43,880 We wanted to understand, okay, how does the beach look, you know? 234 00:17:44,160 --> 00:17:46,220 And they're like, oh, oh, the beach. 235 00:17:46,760 --> 00:17:48,980 Funny you ask. It's five miles away. 236 00:17:51,420 --> 00:17:54,720 And I'll say in the same way, Billy, this cannot happen. 237 00:17:55,080 --> 00:17:59,480 Based on the time frame that you want us to pull this off, it cannot happen. 238 00:18:01,320 --> 00:18:04,460 Despite the warnings, McFarlane plows ahead. 239 00:18:05,120 --> 00:18:07,100 When I got to site, you know, there was nothing. 240 00:18:07,400 --> 00:18:08,400 It was just gravel. 241 00:18:09,230 --> 00:18:14,510 Nick Patero is an event producer, one of dozens brought in to try to pull off 242 00:18:14,510 --> 00:18:15,510 the impossible. 243 00:18:15,630 --> 00:18:19,710 An event like this would take about 18 months of full planning and execution. 244 00:18:20,790 --> 00:18:25,910 But McFarland, as documented here by his own photographer, doesn't appear 245 00:18:25,910 --> 00:18:31,530 worried. He convinces his team to look beyond reason and believe in him. 246 00:18:32,270 --> 00:18:35,810 Billy's personality is kind of intoxicating. 247 00:18:36,840 --> 00:18:38,940 He pulls a yes out of you one way or another. 248 00:18:41,880 --> 00:18:46,940 Back in New York City, investment advisor Calvin Wells takes a call from a 249 00:18:46,940 --> 00:18:53,760 friend who was considering investing $5 million in Fire Media, a startup that 250 00:18:53,760 --> 00:18:57,620 McFarlane claims is already worth $90 million. 251 00:18:58,960 --> 00:19:03,880 And when I got the pitch deck, it showed, you know, headline artists. You 252 00:19:03,880 --> 00:19:05,900 Beyonce on there. You had Jay -Z. 253 00:19:06,440 --> 00:19:09,320 And then they were basically showing that you could access these people 254 00:19:09,320 --> 00:19:10,320 directly. 255 00:19:12,020 --> 00:19:17,140 Wells knows that these artists are locked into long -term contracts with 256 00:19:17,140 --> 00:19:18,140 talent agencies. 257 00:19:18,780 --> 00:19:22,660 I believe very firmly that this was not a legitimate operation. 258 00:19:23,240 --> 00:19:25,480 I said don't invest. It doesn't make any sense. 259 00:19:26,360 --> 00:19:28,240 His friend won't take the bait. 260 00:19:29,100 --> 00:19:33,820 But Wells discovers McFarland is close to clinching a deal with Comcast 261 00:19:33,820 --> 00:19:39,300 Ventures, the investment arm of the cable giant, for an investment of up to 262 00:19:39,300 --> 00:19:40,300 million. 263 00:19:40,660 --> 00:19:46,000 I became sort of alarmed at how successful he'd been in marketing this 264 00:19:46,520 --> 00:19:52,020 So I'm watching this thing unfold on the Fyre Instagrams where they posted Fyre 265 00:19:52,020 --> 00:19:57,980 Island. I sort of filtered the photo and overlaid it with a Google map of Great 266 00:19:57,980 --> 00:20:02,640 Zuma. and saw that basically they had just sort of colored in the bottom part 267 00:20:02,640 --> 00:20:06,580 a subset map and make it look like it was an island. I knew that they were 268 00:20:06,580 --> 00:20:07,580 lying. 269 00:20:08,780 --> 00:20:11,980 Wells knows he's on the trail of something big. 270 00:20:14,040 --> 00:20:21,040 I decided for myself to go check it out and did some 271 00:20:21,040 --> 00:20:22,480 real gumshoe investigative work. 272 00:20:23,600 --> 00:20:27,680 One of my favorite things that we discovered was the half -domed tent. 273 00:20:28,240 --> 00:20:32,180 And so when you compare it to the luxury villa, you know, it's being showed 274 00:20:32,180 --> 00:20:37,040 with, like, electricity and air conditioning. The juxtaposition, I 275 00:20:37,040 --> 00:20:38,040 pretty great. 276 00:20:39,380 --> 00:20:45,500 Wells warns Comcast not to invest and creates an anonymous Twitter handle, 277 00:20:45,500 --> 00:20:48,080 Fraud, and tries to get the word out. 278 00:20:48,280 --> 00:20:50,720 Hashtag Fire Festival is a fraud. 279 00:20:51,400 --> 00:20:55,460 But Instagram posts, show tickets are still selling. 280 00:20:56,880 --> 00:21:00,720 The buzz and the hype around it was just so intense. You know, the heat of a 281 00:21:00,720 --> 00:21:06,420 thousand suns. It was impossible for sort of logic and reason to deflate any 282 00:21:06,420 --> 00:21:09,980 the enthusiasm for it. What I didn't know was who else was going to be 283 00:21:10,740 --> 00:21:16,140 Wells doesn't know it yet, but investors have already given McFarland millions 284 00:21:16,140 --> 00:21:17,140 of dollars. 285 00:21:19,220 --> 00:21:24,320 When American Greed returns, McFarland's fantastic vision is on a collision 286 00:21:24,320 --> 00:21:25,720 course with reality. 287 00:21:27,110 --> 00:21:28,950 I said, Billy, you know you're going to jail for this, right? 288 00:21:29,290 --> 00:21:33,010 I said, because keep in mind, you're selling the people a dream. 289 00:21:44,250 --> 00:21:51,210 In March of 2017, preparations for the Fyre Festival kick up to a frenzied 290 00:21:52,010 --> 00:21:56,070 Staff is working around the clock trying to transform Roker's Point on Great 291 00:21:56,070 --> 00:22:02,210 Exuma into the mythical land of Fire Key that McFarland has promoted online. 292 00:22:04,550 --> 00:22:09,190 There were, I think, 650 tents that needed to get put up. We had to now move 293 00:22:09,190 --> 00:22:13,030 assignments from not even what people paid for to what was built. 294 00:22:15,990 --> 00:22:21,030 McFarland recruits day laborers on the island, and they show up in droves. 295 00:22:21,470 --> 00:22:23,030 We had basically the whole island. 296 00:22:23,450 --> 00:22:27,150 Everything that was available and free, we had working on Roka's Point. 297 00:22:28,830 --> 00:22:32,430 Ended up being 18 hours a day, you know? It was crazy. 298 00:22:34,170 --> 00:22:36,710 Electrician Ricky Curling joins the team. 299 00:22:37,590 --> 00:22:39,250 Brought all of my electricians there. 300 00:22:39,470 --> 00:22:41,730 We were wiring up kitchens, hooking up generators. 301 00:22:42,030 --> 00:22:47,010 We were doing it all, you know what I mean? So the people in the Bahamas, we 302 00:22:47,010 --> 00:22:48,010 in 100%. 303 00:22:49,630 --> 00:22:55,290 Curling is working on credit for McFarland, but paying 15 of his own men 304 00:22:55,290 --> 00:22:57,150 his pocket week after week. 305 00:22:58,350 --> 00:23:02,470 I said, I got to quit. I can't keep doing this. I can't keep paying these 306 00:23:03,150 --> 00:23:08,010 But according to Curling, McFarland assures him and a handful of other 307 00:23:08,010 --> 00:23:14,130 that the money is on the way, and he sends wire transfer confirmations to 308 00:23:14,130 --> 00:23:18,590 it. So this stuff would come up on the email or pop up on your phone and said, 309 00:23:18,920 --> 00:23:22,800 Confirmation that money was sent, so we kept going. Because down here, it's 310 00:23:22,800 --> 00:23:26,820 probably sometimes a week before the money actually shows up. So if you're 311 00:23:26,820 --> 00:23:27,820 patient, you wait a week. 312 00:23:28,660 --> 00:23:34,200 In New York, dancer and artist Daryl Thorne is gearing up to perform at the 313 00:23:34,200 --> 00:23:35,200 festival. 314 00:23:35,540 --> 00:23:39,860 I was so excited. I was super excited. I mean, it seemed like a huge 315 00:23:39,860 --> 00:23:40,860 opportunity. 316 00:23:42,760 --> 00:23:45,480 Thorne creates 36 new headpieces. 317 00:23:46,240 --> 00:23:48,360 and assembled a team of 12 dancers. 318 00:23:49,120 --> 00:23:53,200 The only thing that changed leading up to the event was that I was encouraged 319 00:23:53,200 --> 00:23:54,200 spend more money. 320 00:23:54,640 --> 00:23:58,000 They called me and said, oh, we want body paint for all of the guests. 321 00:23:58,220 --> 00:24:02,580 And so three days or four days before I even went, they had me spend another $3 322 00:24:02,580 --> 00:24:04,920 ,000, which came out of my pocket. 323 00:24:05,740 --> 00:24:08,660 What is this facade that you're putting together that everything's all good when 324 00:24:08,660 --> 00:24:09,780 everything seems to be crumbling? 325 00:24:11,200 --> 00:24:15,640 What no one knows is that Comcast Ventures has pulled out of the deal. 326 00:24:16,060 --> 00:24:20,380 In a statement to American Greed, Comcast Ventures says, after conducting 327 00:24:20,380 --> 00:24:24,980 thorough due diligence, we were unsatisfied with the results and passed 328 00:24:24,980 --> 00:24:25,980 investment. 329 00:24:26,220 --> 00:24:30,120 And without that influx of millions, everything is collapsing. 330 00:24:31,020 --> 00:24:36,420 And one day the fire credit card bounced and I personally got charged $1 ,000. 331 00:24:37,460 --> 00:24:42,020 And then customs just completely held materials because customs bills weren't 332 00:24:42,020 --> 00:24:43,020 paid. 333 00:24:43,429 --> 00:24:48,970 McFarland has burned through all of the investor money, and he owes millions on 334 00:24:48,970 --> 00:24:50,590 a string of short -term loans. 335 00:24:52,310 --> 00:24:57,970 And after a week, vendors like Ricky Curling discover the wire transfers are 336 00:24:57,970 --> 00:24:59,990 phony, and there is no money. 337 00:25:00,350 --> 00:25:01,970 How do you do that to someone? 338 00:25:02,170 --> 00:25:05,810 Like, how do you expect, you know, nobody to find out? 339 00:25:07,190 --> 00:25:09,630 Yeah, good at being fake. 340 00:25:10,730 --> 00:25:12,390 You know, he's good at it. 341 00:25:13,210 --> 00:25:16,950 The walls are closing in on McFarland. 342 00:25:17,250 --> 00:25:21,950 His event producers need money, and they are demanding it from him now. 343 00:25:22,550 --> 00:25:23,690 So there's no money? 344 00:25:52,580 --> 00:25:56,900 When we were all freaking out, he was off on a jet ski or off on a dune buggy. 345 00:25:57,420 --> 00:26:00,120 You know, I never saw him buckle under any pressure. 346 00:26:00,880 --> 00:26:04,240 I physically saw people break down, but him, never. 347 00:26:04,480 --> 00:26:07,920 The last minute, Billy starts saying, okay, we're going to go cashless. 348 00:26:09,480 --> 00:26:15,660 Two weeks out, McFarland sends emails pushing attendees to load up their fire 349 00:26:15,660 --> 00:26:16,720 bands with money. 350 00:26:17,680 --> 00:26:22,900 You can sign up for a yoga class. You can rent a jet ski. The average festival 351 00:26:22,900 --> 00:26:27,020 goer is loading three grand onto their wristband. 352 00:26:27,220 --> 00:26:28,440 You don't want to miss out. 353 00:26:29,480 --> 00:26:32,540 Billy went this way because he wanted the money up front. He needed the money 354 00:26:32,540 --> 00:26:33,540 now. 355 00:26:34,200 --> 00:26:35,940 And the ploy works. 356 00:26:36,810 --> 00:26:41,770 McFarlane reportedly takes in nearly $2 million, and he manages to keep the 357 00:26:41,770 --> 00:26:45,270 festival afloat, but can't stem the tide of chaos. 358 00:26:46,690 --> 00:26:48,010 Oh, island change? 359 00:26:48,510 --> 00:26:52,390 Must be just an island change, but the treasure hunt is probably still 360 00:26:52,390 --> 00:26:56,470 happening. And then they switched again, and then now there's no treasure hunt. 361 00:26:56,790 --> 00:26:58,710 The private beach disappeared. 362 00:26:59,150 --> 00:27:00,370 The private plane disappeared. 363 00:27:01,110 --> 00:27:03,350 The chef disappeared. Like, everything disappeared. 364 00:27:04,680 --> 00:27:10,020 But Orrin Axe is directed to keep churning out the same glamorous images. 365 00:27:10,560 --> 00:27:16,280 And the website is still selling VIP tickets for thousands of dollars and 366 00:27:16,280 --> 00:27:17,960 villas that do not exist. 367 00:27:18,460 --> 00:27:23,600 But some ticket holders are growing suspicious and turning to social media 368 00:27:23,600 --> 00:27:24,600 answers. 369 00:27:26,420 --> 00:27:28,840 It just kept getting bigger and louder and louder. 370 00:27:29,120 --> 00:27:33,100 It got to a point where they were backed against the wall. 371 00:27:33,690 --> 00:27:36,970 It was just immediate texts or emails or phone calls. 372 00:27:37,350 --> 00:27:39,310 You know, we have to delete this. 373 00:27:40,990 --> 00:27:45,850 They were actively, like, deleting the questions. We told them not to do it, 374 00:27:45,850 --> 00:27:50,030 it was just like, that was how they thought that they can stop the noise. 375 00:27:51,650 --> 00:27:53,370 Billy just said, we'll get it done. We'll be fine. 376 00:27:53,770 --> 00:27:57,710 And I don't know how you can say that when you promise villas and there are no 377 00:27:57,710 --> 00:28:00,850 villas. No, you've promised fire key. There's no fire key. 378 00:28:01,470 --> 00:28:06,450 Ultimately, he borrowed so much money in the end, spent so much money that the 379 00:28:06,450 --> 00:28:09,510 only way he'd ever get his money back was by putting this thing on. 380 00:28:12,050 --> 00:28:17,990 It is April 27th. The first guests will be arriving in less than 12 hours. 381 00:28:19,690 --> 00:28:22,430 We're going day four, no sleep. Everybody's kind of losing it. 382 00:28:24,050 --> 00:28:28,970 And it just started pouring, and I was like, you know, if this isn't an omen, 383 00:28:29,110 --> 00:28:30,190 then what is? 384 00:28:33,210 --> 00:28:35,750 Even God didn't want this wrestle to get off. 385 00:28:36,710 --> 00:28:40,450 The tans are soaked, and the site is ravaged. 386 00:28:41,590 --> 00:28:43,530 I know people who begged to cancel. 387 00:28:43,890 --> 00:28:47,410 We're just not ready. We're going to be endangering people. How can we do this? 388 00:28:47,490 --> 00:28:48,490 And he couldn't. 389 00:28:48,850 --> 00:28:51,530 And he still thinks that he's going to get out of it. I just... 390 00:28:51,850 --> 00:28:54,430 That, to me, is one of the great mysteries of Billy. 391 00:28:58,690 --> 00:29:01,390 I mean, everyone's supposed to be here, like Bella Hadid, 392 00:29:02,230 --> 00:29:03,270 Kendall Jenner. 393 00:29:04,110 --> 00:29:06,090 Just, it's insane. 394 00:29:07,190 --> 00:29:12,270 It's the morning of Fyre Festival, and thousands of ticket holders are flooding 395 00:29:12,270 --> 00:29:15,690 the airports, ready for the adventure of a lifetime. 396 00:29:16,270 --> 00:29:17,930 And we have our wristbands. 397 00:29:18,470 --> 00:29:19,530 There we go. 398 00:29:27,400 --> 00:29:30,340 But there are rumblings of problems on the ground. 399 00:29:31,180 --> 00:29:37,640 You know, your private plane, the chartered plane, that's very sketchy. 400 00:29:37,640 --> 00:29:44,020 Blink -182, the musical headliner, has just announced on Twitter they won't be 401 00:29:44,020 --> 00:29:45,020 performing. 402 00:29:45,140 --> 00:29:48,780 In Exuma, guests are herded onto school buses. 403 00:29:49,200 --> 00:29:54,280 The moment I realized that this was not happening and that I've been working on 404 00:29:54,280 --> 00:29:55,280 this like fraud. 405 00:29:55,920 --> 00:30:00,120 It was the moment that we went over the hill, and I saw on the horizon the 406 00:30:00,120 --> 00:30:02,000 tents. Oh, no! 407 00:30:05,800 --> 00:30:08,620 What's happening? There's no water over there. Look at the bed. 408 00:30:09,780 --> 00:30:12,180 These are UN refugee tents. 409 00:30:12,840 --> 00:30:17,340 This isn't going to work. Like, this can't be what this is. 410 00:30:18,340 --> 00:30:22,220 The stages are empty, and it's every man for himself. 411 00:30:23,340 --> 00:30:26,700 And everybody's looking around. Where are the villas? Here, have a shot. 412 00:30:27,180 --> 00:30:30,520 They just were handing out bottles to people because they wanted everyone to 413 00:30:30,520 --> 00:30:31,580 distracted and drunk. 414 00:30:33,660 --> 00:30:38,980 It was just very chaotic. You could tell that everyone is very stressed and very 415 00:30:38,980 --> 00:30:40,160 tense and very overwhelmed. 416 00:30:41,000 --> 00:30:43,800 We have literally been standing here for like an hour. 417 00:30:46,440 --> 00:30:51,280 And then Billy stands up on this giant wooden table and goes, everybody, just 418 00:30:51,280 --> 00:30:52,280 pick a tent. 419 00:30:55,640 --> 00:31:01,020 People stampede for these tents, and they're wet, they're soggy, and yet 420 00:31:01,020 --> 00:31:06,240 are stealing bed covers and stealing tents and fighting over them because 421 00:31:06,240 --> 00:31:10,280 are marooned in a foreign country. It's an absolute disaster. 422 00:31:11,340 --> 00:31:14,000 Festival goers, light up social media. 423 00:31:14,380 --> 00:31:18,320 You know, social media exploded with, like, hashtag fire fail, hashtag fire 424 00:31:18,320 --> 00:31:19,320 fraud. 425 00:31:19,510 --> 00:31:24,330 Every headliner has backed out. There's a bunch of people who have nowhere to 426 00:31:24,330 --> 00:31:29,350 stay. It's 8 .36 and people are now just getting their luggage. 427 00:31:29,750 --> 00:31:36,550 I am stranded in the Bahamas amid thousands of other extremely unlucky 428 00:31:36,550 --> 00:31:41,290 goers. The fire festival is cancelled, but it's an absolute circus. I don't 429 00:31:41,290 --> 00:31:42,209 what's going on. 430 00:31:42,210 --> 00:31:45,870 I'm supposed to be getting a massage on the beach and getting on a jet ski with 431 00:31:45,870 --> 00:31:48,230 Kendall Jenner. It seems like a good idea. 432 00:31:48,760 --> 00:31:50,140 And then it was such a scam. 433 00:31:52,660 --> 00:31:59,100 When American Greed returns, the festival collapse has landed Billy 434 00:31:59,100 --> 00:32:01,140 the radar of the feds. 435 00:32:01,720 --> 00:32:05,520 This was people who had been led to a foreign country with promises of things 436 00:32:05,520 --> 00:32:06,680 that did not exist. 437 00:32:07,040 --> 00:32:12,100 And so it was not only a disaster, it was pretty clearly a disaster with fraud 438 00:32:12,100 --> 00:32:13,100 at its roots. 439 00:32:14,040 --> 00:32:17,980 Hear from other vendors who say they were burned by McFarland. 440 00:32:18,410 --> 00:32:21,290 at AmericanGreed .CNBC .com. 441 00:32:21,590 --> 00:32:23,610 Want inside information from the show? 442 00:32:24,150 --> 00:32:26,070 Join the Greed social network. 443 00:32:26,610 --> 00:32:29,110 Like us on American Greed's Facebook page. 444 00:32:29,530 --> 00:32:30,530 We'll be right back. 445 00:32:38,270 --> 00:32:42,930 Concert goers lured to the inaugural Fyre Music Festival in the Bahamas this 446 00:32:42,930 --> 00:32:44,330 weekend say they're feeling burned. 447 00:32:48,970 --> 00:32:55,530 On April 28th, 2017, the disastrous Fyre Festival is making headlines around the 448 00:32:55,530 --> 00:33:00,190 world. And festival attendees are just trying to get home. 449 00:33:02,850 --> 00:33:03,850 We don't even know. 450 00:33:04,450 --> 00:33:05,450 You're stranded. 451 00:33:05,730 --> 00:33:07,670 We're just waiting on flights to get here. No! 452 00:33:10,830 --> 00:33:12,250 Everybody forming line. 453 00:33:12,710 --> 00:33:16,810 At the gate, they came for their paycheck. They're like, hey, we want our 454 00:33:18,700 --> 00:33:23,680 Hundreds of locals on Great Exuma have worked for weeks on credit, and now 455 00:33:23,680 --> 00:33:25,240 McFarland is gone. 456 00:33:27,560 --> 00:33:32,120 They were demanding answers, but, like, who do you ask for money, you know? 457 00:33:32,300 --> 00:33:35,220 Like, they came and they left, you know? 458 00:33:37,200 --> 00:33:39,780 They fled the island, basically, is what happened. 459 00:33:40,760 --> 00:33:43,380 Daryl Thorne is stranded on Exuma. 460 00:33:43,930 --> 00:33:47,330 and says he is still owed more than $21 ,000. 461 00:33:47,810 --> 00:33:52,350 I was really upset and really, like, how could you just leave us? Just leave, 462 00:33:52,470 --> 00:33:56,850 like, and just walk away from this and leave the people who are working this 463 00:33:56,850 --> 00:34:01,370 event to kind of dig our way out. Like, that was so upsetting. 464 00:34:02,850 --> 00:34:09,170 Within days, the lawsuits pile up, including a $100 million class action 465 00:34:10,380 --> 00:34:15,020 Meanwhile, many fire media employees back home are stunned. 466 00:34:15,400 --> 00:34:19,560 They have been building a platform that they believe would revolutionize the 467 00:34:19,560 --> 00:34:20,719 talent booking industry. 468 00:34:21,540 --> 00:34:27,179 Now, they discover it's all been lies, and McFarlane doesn't have answers. 469 00:34:28,179 --> 00:34:34,440 Well, unfortunately, we are not able to proceed with payroll immediately. 470 00:34:34,840 --> 00:34:39,340 That said, if you want to stick with us, we'd love to have you. 471 00:34:40,170 --> 00:34:45,090 So I'm unclear as to how you're asking us to remain employed while not paying 472 00:34:45,090 --> 00:34:46,090 us. 473 00:34:46,690 --> 00:34:50,389 I think we've been misled, to put it lightly. 474 00:34:50,830 --> 00:34:53,150 Billy, should we have any concern about the FBI? 475 00:34:55,330 --> 00:34:57,890 I don't know. I think that's an individual thing. 476 00:34:58,710 --> 00:35:02,510 By now, the FBI is, in fact, on the case. 477 00:35:04,110 --> 00:35:08,950 McFarland stepped over that line. His vision was mountainous, but his business 478 00:35:08,950 --> 00:35:09,950 plan was debilitated. 479 00:35:10,950 --> 00:35:16,170 Agents discovered that McFarland lured investors by claiming fire media was 480 00:35:16,170 --> 00:35:17,230 worth $90 million. 481 00:35:17,870 --> 00:35:19,650 But that was pure fiction. 482 00:35:20,410 --> 00:35:24,630 He produced fake financial statements. The documents themselves looked 483 00:35:24,630 --> 00:35:29,410 legitimate. And he presented this persona about himself as being 484 00:35:30,410 --> 00:35:37,170 The FBI finds that McFarland told investors the FIRE app had more than 4 485 00:35:37,170 --> 00:35:40,730 bookings in a year. In reality, they were just 60. 486 00:35:41,010 --> 00:35:46,110 He claimed that FIRE Media earned hundreds of thousands to millions each 487 00:35:46,110 --> 00:35:50,770 in revenue. But in one year, the app earned just $57 ,000. 488 00:35:51,090 --> 00:35:54,310 He claimed even at one point that there was a period of time that he had 489 00:35:54,310 --> 00:35:58,030 generated between $40 and $50 million per month. 490 00:35:58,640 --> 00:36:03,940 McFarland assured investors and lenders that he could personally guarantee their 491 00:36:03,940 --> 00:36:10,460 money. He claimed to own an island valued at $8 .4 million and $2 492 00:36:10,460 --> 00:36:13,200 .5 million worth of Facebook stock. 493 00:36:14,120 --> 00:36:18,360 McFarland produced a fake Scottrade account that showed up $2 .5 million. 494 00:36:18,620 --> 00:36:23,200 In reality, he only possessed about $1 ,500 worth of that publicly traded 495 00:36:23,200 --> 00:36:28,960 company. And McFarland created a completely fictitious buyer for 496 00:36:29,500 --> 00:36:34,740 He had provided to them documents that stated that he had sold Magnesis for $40 497 00:36:34,740 --> 00:36:39,540 million and that he was going to sustain millions in profit as a result of it. 498 00:36:39,640 --> 00:36:43,060 In reality, he did not sell the business and that was a lie to the investors. 499 00:36:44,140 --> 00:36:49,920 Ultimately, McFarland took in more than $27 million from more than 100 500 00:36:49,920 --> 00:36:52,900 investors. Some of the investors lost their life savings. 501 00:36:54,890 --> 00:36:58,710 I think it's more indicative of just like sociopathic behavior. 502 00:36:59,010 --> 00:37:02,990 We're not internalizing the damage that you're doing. All that you know is that 503 00:37:02,990 --> 00:37:06,050 you're very good at taking people's money and putting it in your pocket. 504 00:37:07,950 --> 00:37:14,710 On June 30th, 2017, Billy McFarland is arrested at his apartment and charged 505 00:37:14,710 --> 00:37:15,730 with wire fraud. 506 00:37:16,290 --> 00:37:19,670 While awaiting trial, McFarland is out on bail. 507 00:37:20,440 --> 00:37:25,920 But even facing potential years in prison, this serial scammer just can't 508 00:37:25,920 --> 00:37:26,920 himself. 509 00:37:28,740 --> 00:37:29,860 Up next. 510 00:37:30,600 --> 00:37:34,240 We're basically selling a 2018 Grammy ticket. 511 00:37:34,460 --> 00:37:35,880 VIP access, baby. 512 00:37:49,930 --> 00:37:56,850 In November 2017, disgraced Fyre Festival founder Billy McFarland is out 513 00:37:56,850 --> 00:37:59,150 on bail, facing fraud charges. 514 00:37:59,930 --> 00:38:01,830 But he hasn't missed a beat. 515 00:38:02,370 --> 00:38:07,810 McFarland is still paying more than $41 ,000 a month for his apartment and 516 00:38:07,810 --> 00:38:09,050 hitting up hot spots. 517 00:38:10,790 --> 00:38:14,070 Most criminals want to stay out of the limelight, so they don't want to do 518 00:38:14,070 --> 00:38:17,150 anything that's going to get them in trouble. He decided that that didn't 519 00:38:17,150 --> 00:38:18,150 to him. 520 00:38:19,430 --> 00:38:25,590 McFarland quietly starts a new business called NYC VIP, which claims to sell 521 00:38:25,590 --> 00:38:27,570 tickets to exclusive events. 522 00:38:28,710 --> 00:38:32,270 He didn't want the customers to know that it was Billy McFarland. So he 523 00:38:32,270 --> 00:38:36,050 recruited an employee that he would pay and he would be the face of the 524 00:38:36,050 --> 00:38:37,050 business. 525 00:38:37,290 --> 00:38:42,230 Frank Tribble is the front man, but McFarland is the one calling all the 526 00:38:42,750 --> 00:38:45,690 Let me type up what you want for that and I'll send it back to you. 527 00:38:46,070 --> 00:38:47,270 All right, Josh. 528 00:38:48,190 --> 00:38:49,370 I'm just going to call the list. 529 00:38:49,770 --> 00:38:52,790 If they don't pick up, you're going to send them an email. I'll write a shirt 530 00:38:52,790 --> 00:38:53,790 for you right now. 531 00:38:55,030 --> 00:39:00,150 McFarlane shamelessly targets the same people who were ripped off by the Fyre 532 00:39:00,150 --> 00:39:01,150 Fest. 533 00:39:01,190 --> 00:39:04,390 I'm just saying, how did this person get my email? How do I unsubscribe? 534 00:39:04,970 --> 00:39:10,150 So a dinner with LeBron James, Coachella VIP passes, tickets to the Met Gala, 535 00:39:10,190 --> 00:39:11,410 tickets to the Masters. 536 00:39:12,970 --> 00:39:14,930 But the tickets do not exist. 537 00:39:15,670 --> 00:39:18,010 McFarland is back to his old tricks. 538 00:39:36,370 --> 00:39:40,530 He's selling access to exclusive events that people really want to get into. 539 00:39:40,730 --> 00:39:44,430 With the Grammy Awards, one victim who had received tickets... 540 00:39:44,670 --> 00:39:48,890 had flown to New York, had bought a new outfit, had stayed at a hotel and turned 541 00:39:48,890 --> 00:39:52,470 up at the Grammys and was turned away because there were no tickets for her. 542 00:39:53,630 --> 00:39:58,530 Some 15 victims wire McFarlane more than $100 ,000. 543 00:40:06,170 --> 00:40:07,990 McFarlane is arrested again. 544 00:40:08,650 --> 00:40:10,550 He was a serial fraudster. 545 00:40:10,770 --> 00:40:12,950 In his own mind, he was too big to fail. 546 00:40:14,600 --> 00:40:19,880 It's very hard for individuals to accept failure, especially those who feel like 547 00:40:19,880 --> 00:40:20,880 they are bigger than life. 548 00:40:22,340 --> 00:40:27,760 McFarland ultimately pleads guilty to five counts, including wire fraud and 549 00:40:27,760 --> 00:40:28,760 fraud. 550 00:40:29,420 --> 00:40:32,800 No other fire media employees have been charged. 551 00:40:35,140 --> 00:40:41,240 McFarland settled civil charges with the SEC and is barred for life from serving 552 00:40:41,240 --> 00:40:43,820 as an officer or director of a public company. 553 00:40:44,610 --> 00:40:48,770 The class action claims against Ja Rule have been dismissed. 554 00:40:49,630 --> 00:40:55,510 He has not faced criminal charges and tweets that he too was duped by 555 00:40:56,550 --> 00:40:59,310 Ja Rule declined to speak to American Greed. 556 00:41:00,050 --> 00:41:04,970 The models who promoted the festival have apologized, saying they couldn't 557 00:41:04,970 --> 00:41:06,950 known it would turn out to be a fraud. 558 00:41:07,790 --> 00:41:11,890 But investors and ticket holders will never be made whole. 559 00:41:12,630 --> 00:41:18,110 McFarland spent all the money he took in. The damage was real because 560 00:41:18,110 --> 00:41:22,490 were duped and festival goers were bilked out of hundreds of thousands of 561 00:41:22,490 --> 00:41:23,490 dollars. 562 00:41:24,210 --> 00:41:29,790 And hundreds of employees and day laborers will never be paid. 563 00:41:30,070 --> 00:41:33,510 I worked on a weekly rate and I was never paid once. 564 00:41:34,070 --> 00:41:38,870 And the next six months, a year of my time in L .A. was like a hellhole of 565 00:41:38,870 --> 00:41:40,470 figuring out where I'm going to pay my bills. 566 00:41:43,050 --> 00:41:48,230 It was like an island was robbed, you know, and I can't find an excuse for 567 00:41:49,450 --> 00:41:54,850 Electrician Ricky Curling worked 18 -hour days and says he is still owed $40 568 00:41:54,850 --> 00:41:55,850 ,000. 569 00:41:56,390 --> 00:41:59,830 He has six kids to support and has been hit hard. 570 00:42:00,430 --> 00:42:05,210 So I came this close to losing the property. I had to borrow money to pay 571 00:42:05,210 --> 00:42:06,169 the property. 572 00:42:06,170 --> 00:42:07,850 So, I mean, I learned a lesson. 573 00:42:08,110 --> 00:42:09,150 Let me put it like that. 574 00:42:09,730 --> 00:42:10,730 Got to be resilient. 575 00:42:11,710 --> 00:42:15,870 If I let that kill me, I still have to support my family. I can't just dwell on 576 00:42:15,870 --> 00:42:17,710 that. I have to move to the next step, you know? 577 00:42:19,670 --> 00:42:26,230 Billy McFarland is sentenced to six years in federal prison in order to pay 578 00:42:26,230 --> 00:42:28,290 million in restitution. 579 00:42:29,590 --> 00:42:32,730 He's expected to be released in 2023. 580 00:42:34,290 --> 00:42:37,910 Billy, you know, Billy's so young. He'll be out by the time he's 30. 581 00:42:38,430 --> 00:42:41,590 I'm sometimes asked, do you think we've heard the last of Billy McFarlane? I 582 00:42:41,590 --> 00:42:42,770 mean, after all, the guy's in jail. 583 00:42:43,430 --> 00:42:47,470 And I will bet you $100 that you'll hear from him again. 584 00:42:48,050 --> 00:42:49,950 I mean, there's just no way he disappears.