Money Crimes with Nicole Lapin - CELEBRITY: Fyre Festival
Episode Date: May 15, 2025In 2017, Billy McFarland was promoting Fyre Festival - an exclusive event in the Bahamas, filled with celebrity guests, top performers and a lot of good looking people. But behind the glamor, it was a...ll a lie. In the end, Billy became famous -- not for throwing an epic party -- but for getting thrown in jail. Scams, Money, & Murder is a Crime House Original Podcast, powered by PAVE Studios. Listen wherever you get your podcasts. For ad-free listening and early access to episodes, subscribe to Crime House+ on Apple Podcasts. Don’t miss out on all things Scams, Money, & Murder! Instagram: @Crimehouse TikTok: @Crimehouse Facebook: @crimehousestudios X: @crimehousemedia YouTube: @crimehousestudios To learn more about listener data and our privacy practices visit: https://www.audacyinc.com/privacy-policy Learn more about your ad choices. Visit https://podcastchoices.com/adchoices
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Have you ever opened Instagram, saw someone lying on some beautiful beach and said to
yourself, I have to be there? Social media is the epitome of FOMO.
When you see posts of people having fun and looking amazing, it's only natural to get
a little jealous now and again.
The problem is, some people are really good at taking advantage of that feeling.
They'll show you that beautiful island and say this could be you right now.
And if you see a famous celebrity endorsing it, that makes it even easier to believe.
After all, it would be pretty bad for their brand to lie.
Well in 2017, a charming yet manipulative businessman named Billy McFarland was able to tap into the internet's
FOMO machine like never before. Using high-profile celebrity endorsements and social media influencers,
he convinced thousands of people to pay ridiculous prices for tickets to an exclusive music festival in the Caribbean.
It was billed as a once-in-a-lifetime opportunity, a chance to party with the world's most elite
crowd.
Anyone with enough disposable income to snag tickets thought they were getting the vacation
of their dreams. But when they stepped off the plane,
that dream immediately turned into a nightmare.
What's the world going to be like?
As they say, money makes the world go round.
What many don't talk about is the time it made people's worlds come to a screeching
halt.
Whether it's greed, desperation, or a thirst for power, money can make even the most unassuming
people do unthinkable things.
And sometimes those acts can be deadly.
This is Scams, Money, and Murder, a CrimeHouse original.
I'm your host Nicole Labin.
Every Thursday we'll alternate between covering infamous money-motivated crimes and gripping
interviews with the experts or those who are directly involved themselves.
Crime House exists because of you, so please rate, review, and follow scams, money, and
murder.
For early ad-free access and bonus content, subscribe to Crime House Plus on Apple Podcasts.
And for even more true crime stories this week in history, check out Crime House, the
show.
This episode is all about Billy McFarlane, the con artist who engineered the disastrous
Fire Festival in 2017.
Initially hailed as this visionary entrepreneur, Billy committed fraud after fraud, lying to
investors, to employees, and music fans alike.
That is, until the whole house of cards came crashing down in real time. it's Nicole. If you love scams, money, and murder, where we look at some of the world's wildest money crimes, then you definitely have to check out Clues with Kailyn Moore and Morgan
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Fire Festival turned out to be a failure of such epic proportions that the world is still
talking about it eight years
later.
For people plugged into social media, it was like watching a PR disaster play out live.
But if it had gone according to plan, we might be describing its creator Billy McFarland
in the same breath as we talk about Sam Altman or Mark Zuckerberg.
Billy was born in 1991 into a wealthy New Jersey family.
Everyone who talked about his childhood said he had a pretty normal, happy home life.
But if you met Billy as a kid,
ordinary probably wouldn't be the word you'd use to describe him. From a young age, he showed an affinity for technology, and he used it to get his way.
Billy bragged that in second grade he hacked his school's computer system just to impress a girl.
He claimed that in fifth grade while other kids were out playing,
he had started his own company for hosting websites with
three employees overseas.
I should stop here for a second and point out that we have to take everything Billy
says with a grain of salt.
He has been accused of being a compulsive liar, and his childhood is hard to verify.
However, one of his friends from seventh grade agreed that Billy had a knack for entrepreneurship.
He claimed the two of them created a Facebook knockoff website for fun and sold it for $3,000.
Billy was always looking for a way to make money and pushed the boundaries while doing
so.
His friends saw him as part prankster, part visionary. And as Billy got older, he
cultivated that image of a self-made boy genius.
In 2010, during his freshman year of college, he created a platform called Spling, which
allowed users to share content with one another. It apparently went well enough that in May of 2011, he dropped out and moved to Philadelphia
to turn the site into a business.
Spling didn't go anywhere, but Billy soon moved to New York City to launch a better
idea.
He was going to capitalize on his generation's craving for status and community with a luxury
credit card aimed at millennials.
As he tells it, he personally made the prototype out of a sheet of metal and magnetic tape.
To get one of these slick black cards, all you had to do was pay a yearly membership
of $250.
Once they joined, card owners got exclusive perks like access to a luxury car, a nightlife
concierge, and use of a Manhattan townhouse.
He called his new company, Magnesis.
But this wasn't the kind of project you could bootstrap from a basement.
To make it work, Billy needed business partners.
One of the first was Grant Margolin, a self-described marketing prodigy.
According to Billy, Grant called him one day with a laundry list of ways to make Magnesis
better, and Billy hired him on the spot.
Billy also found two allies with deep pockets to help him finance the project.
One was Karola Jayne, a wealthy marketing executive and independent investor. The other
was Aubrey McClendon, the CEO of Chesapeake Energy, one of the largest producers of natural
gas in the country.
But money alone wouldn't turn Billy into the next tech titan. He needed visibility,
someone recognizable and cool. Someone who would slingshot Magnesis into people's social media
feeds. Not only that, but someone rich enough to get him FaceTime with New York's elites.
Then he found Ja Rule.
FaceTime with New York's elites. Then he found Ja Rule.
Ja Rule was a famous rapper.
You might know some of his hits.
He also made headlines for his beef with rapper 50 Cent
and getting into legal trouble.
In 2007, he was arrested for tax evasion
and illegal possession of a weapon.
He pleaded guilty and served about two years in prison from 2011 to 2013.
When Ja got out, he was looking for something new to help his image and to bring in cash.
Word got out to Billy who wanted to book him for an event.
He went through gatekeeper after gatekeeper before he finally connected with Ja himself. They became fast friends, and Billy soon brought him on board as the face of Magnesis.
Billy gave him a title too, Creative Head.
Although if you watch some of his interviews, it's not clear, even to Ja, what some of his
responsibilities were.
To be fair, a lot of people didn't fully get what Magnesis was all about.
It was supposed to be a credit card, but Billy wanted it to be so much more.
He expanded the nightlife concierge part of the business to include things like fashion
shows, wine tastings, and parties with recognizable VIPs.
Unfortunately, Billy had a big problem.
He couldn't actually afford to host those swanky events.
He told people that Magnesis had over 100,000 paying members, but in reality, he only had
a fraction of that.
By June of 2015, Billy was barely staying afloat, and that month he got hit with a huge
lawsuit by the landlord who owned the Magnesis townhouse.
The owner claimed that some of the events Billy put together were more like frat parties,
and his guests had trashed the apartment.
Without that townhouse to draw people in, Magnusus was in trouble.
Billy needed some way to keep the party going.
That's when he came up with his first big scam. Selling tickets he didn't actually have.
Here's how it went down. Billy sent an email telling members that he had discounted tickets to Hamilton.
At the time, prices for those tickets were going for upwards of $1,000 a pop.
Because it was such a hot item, people snatched up every ticket he had.
The truth was, Billy didn't have any tickets.
When the day of the show came, he went online and bought whatever tickets were still available.
And since it was last minute, he paid way more than full price.
To make up the money he lost, he had to sell more tickets to another expensive show, and
then another, and another.
By doing this, he hoped to keep his customers hooked until
Magnesis was profitable enough to stand on its own. It was a shell game, but as long as he kept
the pieces moving and acted like everything was fine, no one noticed he was hemorrhaging cash.
For a while, anyway.
cash. For a while, anyway. On March 1, 2016, Billy's angel investor Aubrey McClendon was indicted by a federal
grand jury for a price-fixing scam. The next day, Aubrey died in a car crash. For Billy,
it meant losing his biggest ally and his checkbook.
Billy knew Magnesis couldn't last without a huge infusion of cash.
That's when he came up with an idea for a new company.
He remembered how hard it was to reach Ja when they met.
He thought, what if people could book talent like Ja through an app just as easily
as they ordered an Uber?
He assembled a team of coders and creatives
to work on his talent booking app called Fire with a Y.
After a few months, they'd already come up
with a way to promote it, a massive music festival.
Ja Rule also took credit, saying it was his idea from
the start. But Billy had his own story to tell. Since then, a lot of people had tried
to take credit for this idea. But regardless of who came up with the initial pitch, it
soon took on a life of its own. Remember, Billy saw himself as a visionary. If he was going to put on a music
festival, it was going to be epic. Fire Festival would be the biggest, most unforgettable party
the world had ever seen. And he was right, but not in the way he imagined.
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Hey there, it's Nicole.
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crimes, then you definitely have to check out Clues with Morgan Apsher and Kailyn Moore.
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In the summer of 2016, Fire Festival was still just a hazy vision in Billy McFarlane's mind.
But once he found the right location, the image became clear.
This story goes that Billy and Ja Rule were on a private plane in the Bahamas,
and their jet ran low on fuel.
They had to make an emergency landing on a tiny island called Norman's Key.
It was part of this bigger
cluster of hundreds of islands called the Exumas.
When you picture this place, think paradise. Crystal blue waters, sandy beaches, and palm
trees. It's stunning. It's remote. So remote that Pablo Escobar actually once used the island to smuggle drugs.
But after that emergency landing, which probably isn't true, Billy claimed he was entranced
by the island nonetheless.
He made his way to a bar in one of the island's resorts, buying drinks from a local fixer
named Delroy Jackson. As the liquor flowed, Billy pitched Delroy his idea for a music festival.
Right there on the island.
Delroy probably thought he was crazy.
He said it couldn't be done.
But two weeks later, Billy returned with jaw rule.
That's when Delroy realized just how serious Billy was.
Billy wanted this festival to be the hottest thing on the internet.
So in late 2016, he hired Jerry Media, a marketing company known for its funny memes and viral
campaigns.
When he told them he wanted to hold the festival in April 2017, their
jaws hit the floor. There was no way this could all be done in just a few months. But
Billy claimed he'd bought the island, and the logistics were already being worked out.
Like all great scam artists, his confidence was like a superpower. The island purchase was a
total lie. But if enough people believed he could do something like that, then everyone on his team
would make sure the festival went forward. The logistics were a problem for Later. His biggest priority was getting the word out.
So Billy hired a film crew and flew them out for the most unexpected commercial they had
ever shot.
Billy and his chief marketing officer, Grant Margolin, wanted the commercial to feel organic,
like the viewers were really partying on a
beach with supermodels.
So the production company wasn't allowed to plan anything.
They were supposed to just follow the talent around and film every moment.
Speaking of talent, Billy went all out.
They hired some of the most famous supermodels in the world.
People like Bella Hadid and Emily Radikowski.
The models, who were told it was a professional film shoot, spent the weekend watching Billy
and Ja get blackout drunk while cameras rolled.
But the final product was exactly what Billy wanted it to be.
You can watch the commercial for yourself. It's
almost two minutes of attractive women lounging on yachts, swimming with adorable pigs, and
riding jet skis through pristine water. As Billie himself said, quote, we're selling
a pipe dream to your average loser. On December 12, 2016, the commercial went live.
At the same time, 400 influencers around the world posted a blank orange tile on social
media.
These were some of the biggest names in the world, and they were paid handsomely for it.
Kendall Jenner, for example, got $250,000 for a single Instagram post.
Millions of feeds were suddenly flooded with orange squares, next to a link for the commercial.
These were trusted leaders in music, lifestyle, and fashion, all sharing the same message.
Buy tickets to Fyre Festival while you can.
message, buy tickets to Fyre Festival while you can. The marketing campaign nearly broke the internet.
The Fyre Festival website advertised the most exclusive kind of experience, with prices
ranging from $500 all the way up to a quarter of a million dollars.
Among the perks was a ride from Miami to the Bahamas aboard a private jet.
Guests could stay in luxury glamping tents and have chef curated meals prepared for them.
There was even a treasure hunt for luxury items Billy had stashed around the island.
The festival itself would be an incredible celebration of music set over two weekends
in late April and early May.
It would feature huge artists like Major Lazer and Blink-182, as well as artists from the Good
Music record label. Many people thought that meant Kanye West, Good Music's founder, would be there
as well. And of course, there were special VIP options for people with even more money to spare.
For $250,000, you could stay on a private yacht with a personal chef.
Talk about FOMO.
The festival sold out in weeks.
What the public didn't realize was that none of those things actually existed yet.
And before construction could even begin,
things started to fall apart.
The owner of Norman's Key,
where Billy and Josh shot the commercial,
warned them not to mention the island's history
with Pablo Escobar.
So when he saw Pablo's name blasted across the internet, he told Billy to take his business
elsewhere.
And just like that, Billy lost his venue.
Billy scrambled, flying island to island looking for a new home for the festival.
But he finally landed on one of the larger ones, Great Exuma.
The island was better off than most in the area.
It had running water and electricity,
and a few thousand people who could work as laborers.
But the site itself wasn't exactly
the paradise Billy had pitched.
It was basically a demolished parking lot
sandwiched between a sandals resort and a cliff. That meant everything would
either have to be flown in or built from scratch. So you can see why the whole
thing seemed impossible. Normally it can take a year or even more to plan a music festival, even in a well-equipped
place like Miami.
But Billy had just about four months to do it on a remote Caribbean island.
Not only that, but the dates he picked coincided with one of the area's biggest events, the
National Family Island Regatta.
That meant that all the hotels on the island were already fully booked,
so the accommodations would have to be built from scratch too.
For people on the ground, panic set in.
They hired over 200 day laborers and made them work around the clock.
Vendors were hired on last-minute contracts to provide food,
water, and toilets. There was just one problem. Billy couldn't pay for any of it.
Emails from this time showed that Billy was out of cash and desperate. Remember his other
company, Magnesis, was already in debt from his ticket scams.
But instead of folding, he doubled down on his lies. When a vendor demanded payment,
he said he'd already sent it. He attached screenshots as proof with the tracking numbers
conveniently missing.
But a lot of vendors weren't falling for it. One by one, they started dropping out, and Billy realized he needed a new infusion of
cash and fast.
So he started selling more expensive tickets to the festival.
His chief marketing officer, Grant Margolin, designed these super posh villas that sold
for hundreds of thousands of dollars.
As you may have already guessed, these places didn't exist either.
Even that wasn't enough, though.
So Billy forged documents to get investors to loan him money.
For example, he had a spreadsheet listing hundreds of thousands of dollars in payments
to top musicians, even though he'd spent less than 60,000.
He also said that he personally had a lot more money in his own accounts in order to
get the cash he needed.
Like telling an investor that he had $2 million in Facebook stock to get an $800,000 loan.
All told, he borrowed over $26 million from about 80 people.
And investors took Billy at his word.
But ironically, the terms of his loans only made him more desperate. One of his loans required him to pay $600,000 in interest in only three months,
which meant he needed even more money to pay the interest on the cash he'd just received.
Meanwhile, the public was starting to get suspicious. A financier named Calvin Wells saw
fire-advertised musicians he'd worked with.
When he called their agents, he learned that they'd been promised twice their usual rates,
and still hadn't been paid.
Then Calvin noticed something even more sus.
The map of the fire festival's location was actually
photoshopped to make it look like a private island when
it definitely was not.
He started digging, and the more he found, the sketchier the whole thing felt.
Calvin started an anonymous Twitter account calling out Fyre Festival as a hoax.
He even contacted the Wall Street Journal and got them to run a
story on the festival's financial woes. But every time someone spoke up, they were
immediately drowned out by Billy's social media team.
Fire Festival would happen, whether it was ready or not.
On April 26, 2017, hundreds of people boarded flights from Miami.
They shared selfies at the airport and posted about their excitement for what the Fyre Festival website called
a festival unlike any other.
And they were right.
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a car crash in slow motion.
They knew there was no way they could complete the site.
A few people begged Billy to cancel the festival, but he refused.
He was too deep not to see it through.
On the morning of April 27, 2016, the first planes arrived from Miami, carrying about
800 guests, many of which were already disappointed and confused.
The fancy private jet they were promised turned out to be a regular commercial airliner,
and some were bummed to learn that Link 182 had just canceled their performance.
But as far as they knew, everything else was on schedule.
When the guests de-planned, festival staff put them on shuttles and brought them to a
restaurant on a different part of the island where an open bar awaited.
They ran up a tab of $135,000, which Billy seemingly still hasn't paid even as of this
recording.
But after a few hours of drinking and partying, the guests had their fill and asked to see
their accommodations. Billy sent school buses to bring them to the festival site, if it could even be called
that.
The attendees looked out the window in horror at a sea of white Fema tents reportedly left
over from Hurricane Matthew.
These were the luxury villas they paid for.
They saw piles of mattresses soaked through from a torrential rainstorm the
night before. There were unfinished buildings, unopened crates of materials,
and tons of empty Amazon boxes. It was like Billy thought he could just order a festival
and have it delivered.
Hundreds of confused ticket holders
lined up outside the festival's headquarters,
which was really just a small house.
For a while, the staff tried to maintain order,
but then Billy got on top of a table and told everyone to grab a tent and fend for themselves.
After that, the whole situation got very Lord of the Flies.
People fought each other for a place to sleep.
They looted supplies.
Someone set a tent on fire. It was total anarchy.
Images from the festival spread online. Then an attendee posted a picture on Twitter of the chef
curated dinner he was promised. A dry cheese sandwich. It went viral.
When the marketers at Jerry Media saw that post, they knew it was game over.
Grant Margolin was still running around pretending like the festival could be saved.
He told Jerry Media to keep posting ads, but they refused. So he fired them and hired a new social media team right there on the spot.
Meanwhile, Billy had a meltdown.
He paced on the patio in tears.
As for all the ticket holders, they were just desperate to leave.
When morning came, a mob of angry, intoxicated people crowded inside Great Exuma's tiny
airport.
They waited for hours without food or water.
One person passed out and needed to be taken to the hospital.
When the plane finally arrived, the first passengers got on, only to be shuffled off
and sent back into the waiting room.
A guy named Seth Crosnow was on the plane when it finally took off the morning of Friday,
April 28th.
While in the air, he got an email from Fire Festival which said that day one had a few
bumps but day two would be better.
It was like a sick joke.
Faced with reality, Billy did eventually cancel the festival.
But he wouldn't take responsibility for what he'd done.
The press release he sent out blamed, quote, circumstances out of our control.
That was a lie that nobody except Billy believed.
By Sunday night, a law firm called Garagos & Garagos filed a class action lawsuit
seeking $100 million in damages.
Others like Seth Crosno filed individual claims
with their own lawyers.
Everyone was upset and everyone wanted to get paid.
Local merchants and construction crews swarmed the festival's headquarters,
demanding the wages they were rightfully owed.
It got so bad, the festival staff fled, fearing their own safety.
When Billy returned to the States, he did what he always did. Lie, cheat, and spin.
He blamed the catastrophe on him being a little naive. He told his employees that since they were
like family, they needed to support him. Then he told them he wasn't going to pay them anymore,
and he wouldn't help them get unemployment.
It was an incredible betrayal.
Even worse, some of them were personally liable for hundreds of thousands of dollars worth
of debt.
Billy had convinced several Fire app employees to let him take out lines of credit in their
names.
Then, he used the credit to pay for the debt
from his magnesis scams.
The Fire app's creative director learned this the hard way
when he found himself on the hook for 250 grand.
But even as the creditors closed in around Billy,
he acted like everything was fine.
And Ja Rule was by his side,
deflecting blame and helping him plan the next big thing.
Fire Festival 2018. Of course, that wasn't going to happen. On June 30th, 2017, the
FBI arrested Billy and charged him with wire fraud.
He was released on bail, but asked for a public defender because he no longer had a lawyer.
His previous attorneys had already dropped him for, you guessed it, not paying them.
Billy should have stayed quiet and kept a low profile, but he couldn't let go of the
lifestyle he loved. While he
awaited trial, he kept living in his luxury penthouse, going out to clubs, and
buying bottle service for the table. Of course, all of this costs money, so you
can probably guess what comes next. In December of 2017, people on the FyreFest mailing list started getting emails from a
company called NYC VIP Access.
The emails offered discount tickets to some of the most exclusive and impossible events
to attend.
Things like the Met Gala, sponsored passes at Burning Man, and a VIP
introduction to Taylor Swift. Some people realized pretty quickly these were fake. The
Met Gala is invite only, Burning Man doesn't allow sponsors, and Taylor Swift famously
doesn't sell backstage passes.
But Billy had a few talented grifters on his
payroll who helped him scam a handful of people out of more than a hundred and
fifty thousand dollars. When a vice reporter put the pieces together, Billy
was arrested again and charged with more wire fraud, bank fraud, and making false
statements. In exchange for leniency, he pleaded guilty.
On October 11, 2018, Billy was sentenced to six years in prison. Even behind bars,
he kept breaking the rules. He smuggled in a recording device hidden inside a pen so he could dictate his memoir. That act landed
him in solitary confinement. Later, he tried using a phone to record a podcast, which put
him back there again.
Billy was released in March of 2022, after serving less than four years of his sentence. To make money, he sold trading cards and he recorded celebrity birthday messages on Cameo.
And now, in 2025, Billy is supposed to be doing, get this, another Fyre Festival.
It's scheduled to happen really close to this episode airing, actually, from May 30th
to June 2nd on Isla Mujeres
off the coast of Cancun, Mexico.
In March, they even announced their first act, former NFL star turned rapper Antonio
Brown.
Whether or not Fyre Fest 2 will be an act of redemption or another flop?
Well, that's the million dollar question.
Fire Festival harnessed the power of influencers
like never before.
Without the help of big names like Ja Rule,
Bella Hadid, and Kendall Jenner,
it never would have gotten off the ground,
and probably wouldn't be getting a second win today.
But the festival did something that's actually really unique to the times we're living in.
It highlighted the fact that influencers, unlike traditional marketers, are virtually unregulated.
In 2019, the Federal Trade Commission released a guide for influencers,
reminding them to announce when they're paid to promote a product.
However, it's a rule that's rarely enforced.
The truth is, when making expensive decisions,
like buying all-inclusive vacations, it's really good to do your homework.
So if you're considering getting a ticket to FireFest 2,
just make sure you do your due diligence.
And maybe also pack your own snacks. Money and Murder is a CrimeHouse original. Join me every Thursday for a brand new episode. Here at CrimeHouse, we wanna thank each and every one
of you for your support.
If you like what you heard here today,
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Scams, Money, and Murder is hosted by me, Nicole Lapin, and is a CrimeHouse original
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This episode was brought to life by the Scams, Money, and Murder team, Max Cutler, Ron Shapiro,
Alex Benedon, Natalie Persovsky, Laurie Maranelli, Sarah Camp, Xander Bernstein, Joanna Powell,
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