NEW YORK (CelebrityAccess) — While we've already recounted the numerous and mounting legal woes that organizers of last month's disastrous Fyre Festival are facing in the wake of the event's unraveling, we've now learned that federal authorities are looking into potential criminal charges.
According to the New York Times, an unnamed source with knowledge of the matter said the United States attorney’s office for the Southern District of New York and the F.B.I. have launched an investigation into possible mail, wire and securities fraud.
The source told the Times that the investigation is being overseen by a prosecutor assigned to the complex frauds and cybercrime unit. A spokesman for the United States attorney’s office and a spokeswoman for the F.B.I. declined to comment to the Times, the paper said.
Potential victims include everyone from Blink-182, who still have road gear held by customs, Fyre employees who have not been paid, ticketholders, and local vendors in the Bahamas who claim to be owed significant amounts of money.
Mr. McFarland and his lawyers declined to address specific allegations. But in a statement to the Times, he said: “I cannot emphasize enough how sorry I am that we fell short of our goal,” adding, “I’m committed to, and working actively to, find a way to make this right, not just for investors but for those who planned to attend.”
Stacey Richman, a lawyer for Ja Rule, said that he “would never participate in anything fraudulent; it’s simply not in his DNA.”