The organizer of the failed Fyre Festival has declared in a court in New York that he is guilty of fraud.
Billy McFarland had investors invest 26 million dollars (almost 21 million euros) in his company and the festival under false pretenses.
McFarland and his team, including rapper Ja Rule, had touted Fyre Festival as a luxurious, exclusive celebration and paid stars to promote the festival on social media.
When the first visitors arrived in the Bahamas in April, it turned out to be a big chaos on the island. Instead of spending the night in elegant bungalows, there were tents ready, the luxury meals consisted of a sandwich with cheese. There was also a shortage of water and medical care. The festival, therefore, had to be canceled at the last minute.
Arrest
Later it turned out that a large group of investors had also been duped. McFarland was arrested in New York on 30 June for fraud. The 26-year-old American is accused of tampering with documents he gave to potential donors of the festival.
As a result, the eighty investors got wrong figures about the financial health of the company that he had set up to organize the festival.
A ticket vendor put 2 million dollars in a batch of exclusive pre-sale cards on the basis of the false papers.
Punishment
McFarland can receive a maximum of twenty years in prison for the fraud. He offered his apologies to all the victims during the session.
According to Billboard, his confession of debt is part of a deal, which means he has to go to jail for eight to ten years. The final decision on the sentence will take the judge in June.
