Billy McFarland, the convicted fraudster behind the Fyre Festival disaster, has been sued in Brooklyn state Supreme Court by a former business associate he met while serving time for wire fraud behind bars, according to court papers filed Wednesday.
Jonathan Taylor, 54, is suing McFarland, 31, for breach of contract, alleging he robbed him of more than $650,000 after they formed PYRT Technologies, a Delaware company aimed at creating podcasts, treasure hunting and other activities, according to court papers.
It also alleges that McFarland hid the funds from his probation officer to prevent the money from being given to Fyre Fest victims.
At the time of the deal, McFarland allegedly told Taylor, a Brooklyn-based entrepreneur, that he had $6 million in capital reserves as well as a $1 million book advance. According to the complaint, McFarland said he had a $2 million publishing deal to write about the 2017 Fyre Festival debacle.
Billy McFarland, founder of the famous Fyre Fest 2017, was sentenced to six years in prison for wire fraud. AP
Taylor met McFarland in an Elkton, Ohio, prison in 2019 while the former was serving time for sexually trafficking a minor in Florida in 2015.
The two men decided to form the company with McFarland’s business partner Michael W. Falb, with each partner retaining a one-third interest, court papers said. Falb was named as a co-defendant.
“They had a personal relationship while they were inmates,” Taylor’s attorney Jason Russo told The Post of Taylor and McFarland. “When Jon came out, he liked Billy and helped him in any way he could.”
Taylor was released from prison in 2020 and began working on projects for PYRT, including a podcast — “Dumpster Fyre” — featuring McFarland, who participated from prison. McFarland was sent to solitary confinement after a trailer for the podcast was released online in October 2020.
Jonathan Taylor says Billy McFarland defrauded him out of more than $700,000 in a lawsuit filed Wednesday. Courtesy of Tom Estey Publicity
“Both [McFarland and Falb] directing the plaintiffs to provide them with funds in various forms to avoid requiring defendant William Z. McFarland to report the receipt of funds to his Probation Officer, or to have the funds subject to seizure or garnishment,” the complaint states.
In addition to his six-year sentence, McFarland is subject to a federal forfeiture order of $26 million in victim restitution.
In March, 2022, when McFarland was released from prison after serving four years of a six-year sentence, he and Falb allegedly began asking Taylor for cash and racked up thousands in charges on Taylor’s credit card for purchases they claimed were business expenses, the complaint said. said. It also claims they “directed” Taylor to “make various purchases on Amazon.com for the benefit” of McFarland.
Participants at the Fyre Festival in the Bahamas. One participant said he paid for a two-room villa but was instead given a tent with a wet bed.
The complaint further alleges that McFarland and Falk asked Taylor to send a sum of cash to McFarland’s home in Brooklyn, which was used “for personal expenses, not business expenses.” The Amazon purchases and cash allegedly totaled about $30,000.
According to the complaint, there were also wire transfers of $543,172, as well as Venmo transactions, credit card charges and about $15,000 in crypto transfers — some to McFarland and others to third parties. In all, the complaint alleges, about $650,000 intended for business expenses was used by McFarland for personal expenses.
Taylor told The Post through his attorney that he has tried to resolve the dispute with McFarland without success.
At the disastrous Fyre Festival in the Bahamas, attendees were promised a lavish event but were served cheese sandwiches and given damp tents. AP McFarland at Fyre Festival. ZUMAPRESS.com
Russo said McFarland repeatedly refused to return funds provided by his clients as short-term loans between June and August 2022.
“Basically, it’s a breach of contract,” Russo said. “Billy broke any commitments he made to Jon very quickly, Jon asked for his funds back and they refused.”
McFarland’s attorney Harlan Protass said in a statement: “This is a completely baseless lawsuit without merit, compounding a laundry list of lies. The truth is quite simple: PYRT does not want to be in business with convicted child predators and drug addicts like Jonathan Taylor. We tried several times to refund Jon his money, but his lawyers remained silent despite our repeated attempts to contact them. Despite the lawsuit, we are still open to a settlement.”
In an interview with Taylor Wednesday, he told The Post that he believed McFarland used the cash he gave him for business expenses. “Now, I feel like an idiot,” he said.
While in prison, Billy McFarland created a 50-page plan to revive the Fyre Festival. fyrefestival2.com
Back in 2017, Fyre Festival was promoted as a luxury music festival in the Bahamas, advertised by influencers and models, including Kendall Jenner and Emily Ratajkowski.
The mishap went viral after contestants posted pictures of cheese sandwiches in styrofoam containers and tents being blown over by the wind. The disaster led to documentaries on Hulu and Netflix — “Fyre Fraud” and “Fyre: The Greatest Party That Never Happened,” respectively.
Earlier this month, McFarland hosted the Fyre 2 Festival at an airport in Orange County, NY, featuring a zero-gravity flight. Performers include Bobby Shmurda, Sleepy Hallow and Capella Grey. He told The Post that 75 participants attended the event.
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Source: thtrangdai.edu.vn/en/
