In March, McFarland, who had been out on $300,000 bail, pleaded guilty to criminal fraud charges and was ordered to repay the $27.4 million back to his investors. The court scheduled him to be sentenced on June 21.
Then, days before his sentencing in June, he was arrested and charged with money laundering and an additional count of fraud for allegedly selling fraudulent tickets. Through a separate enterprise, NYC VIP Access, McFarland allegedly sold fake tickets to events like the Met Gala and the Burning Man Festival, even soliciting Fyre Festival attendees as he was awaiting sentencing for his previous scams.
Earlier this month, two attendees of the festival won $5 million in compensatory and punitive damages in a civil suit naming McFarland.
In settling the SEC’s charges, McFarland has agreed to a permanent officer and director bar that would prevent him from serving as officer or director of any entity that issues securities. He also agreed to pay $27.4 million to disgorge his investments, which will be deemed satisfied by his forfeiture in the criminal case, according to the SEC.
Co-defendants Margolin, Symon, Fyre Meda and Magnises settled the SEC’s charges without admitting or denying the allegations. Margolin will serve a seven-year director-and-officer bar and pay a $35,000 penalty, while Simon will serve a three-year director-and-officer bar and pay over $15,000 in disgorgement and penalties.
McFarland is expected to be sentenced for the criminal charges related to the Fyre Festival scheme next month.