(AllHipHop News) Fyre Festival founder Billy McFarland has avoided a lengthy prison sentence, but his scam will cost him dearly.
Billy McFarland reached a settlement with the SEC earlier today, over the botched event, which was supposed to take place on Great Exuma in the Bahamas in April and May of 2016.
Billy McFarland and his partner Ja Rule, who was never charged with any wrongdoing, managed to raise tens of millions of dollars for the Fyre Festival from over 100 investors.
According to the SEC, McFarland "induced investors to entrust him with tens of millions of dollars, by fraudulently inflating key operational, financial metrics and successes of his companies."
Billy McFarland even showed his investors a fake brokerage account statement, claiming he had over $2.5 million in holdings, when he was really worth about $1,500.
Fans paid between $1500-$250,000 for an exclusive VIP experience with tastemakers like Blink-182, Lil Yachty and Migos.
“McFarland gained the trust of investors by falsely portraying himself as a skilled entrepreneur running a series of successful media companies. But this false picture of business success was built on fake brokerage statements and stolen investor funds,” said Melissa Hodgman, Associate Director of the SEC’s Enforcement Division.
Despite the magnitude of his fraud, Billy McFarland managed to avoid prison time by agreeing to pay a whopping $27 million dollar fine.
Additionally, he's barred from ever acting as a CEO or director of any official company for life.