McFarland, the 26-year-old CEO of Magnises, a concierge company, and Fyre Media, an app to book performing artists for private events, will spend the night in jail.
He is expected to be arraigned before a judge on Saturday, Joon Kim, the Acting United States Attorney for the Southern District of New York, said in a statement.
Thanks to the investigative efforts of the FBI, McFarland will now have to answer for his crimes.” READ: Rich millennials paid thousands for Ja Rule’s Fyre Fest and are now stranded on an island in disaster-relief tents Prosecutors allege McFarland began the criminal scheme in late 2016, right around the time he announced the Fyre Festival through a well-orchestrated marketing campaign involving hundreds of so-called Instagram “influencers,” including Kendall Jenner, Bella Hadid and Hailey Baldwin.
According to the criminal complaint, filed in the Southern District of New York, McFarland lied to at least two investors about how much the company was worth, eventually inducing them to invest around $1.2 million in the festival based on assertions that Fyre was making millions of dollars in revenue.
READ: Exclusive audio: Fyre Festival founders reveal to employees nobody’s getting paid Though the complaint doesn’t specifically list the stock or the investor, a brokerage statement purporting to show McFarland as the owner of $2,565,079.18 in Facebook stock is listed as an exhibit in a civil suit filed by investor Oleg Itkin, who gave McFarland a $700,000 loan.