Fyre Fest’s Billy McFarland Ordered to Pay Extra Than $three Million to Ex-Investor
New York County Choose Joel H. Cohen has ordered Fyre Pageant founder Billy McFarland to pay again practically $three million to a sponsor of the occasion. A default judgement was handed out in favor of defrauded investor EHL Funding after McFarland “failed to look, reply or in any other case transfer on this motion.”
McFarland has been ordered to pay again the practically $three million mortgage plus the contractually stipulated 30 p.c curiosity. EHL Funding can be requesting that McFarland reimburse its lawyer charges.
EHL Funding offered McFarland with the mortgage to placed on the music pageant, however Fyre stopped paying again the cash in April of 2017, the identical month the highly-publicized failed occasion.
McFarland can add the brand new debt to the greater than $24 million he owes after his SEC settlement. Final July, McFarland, his former companies (millennial-directed bank card firm Magnises and Fyre Media), a former government and a former contractor have been charged with fraud for deceptive over 100 traders into offering at the very least $24.7 million for his or her failed companies.
Additionally in July, Fyre Pageant attendees Seth Crossno and Mark Thompson gained a $5 million settlement in opposition to McFarland after he failed to reply to courtroom proceedings for over a yr. Crossno and Thompson are the primary of the pageant’s victims to acquire a judgment in opposition to McFarland, who every have been awarded $1.5 million in compensatory damages for flights, inns and psychological anguish, ache and struggling. They have been every additionally awarded a further $1 million in punitive damages.
In October, McFarland pleaded responsible to fraud and is now serving a six-year sentence in a jail in New York.
McFarland and rapper Ja Rule who helped promote the pageant are additionally named as defendants in a $100 million class-action lawsuit introduced by movie star regulation agency Geragos & Geragos.
This text initially appeared on Billboard.