Founder of failed Fyre Festival faces federal fraud charges

Prosecutors allege that William "Billy" McFarland, co-founder and CEO of Fyre Media, defrauded at least two investors who invested about $1.2 million total in the Fyre Festival. McFarland allegedly also presented one investor with false stock ownership documentation in an effort to legitimize the project.

He was arrested Friday in New York and is scheduled to appear before a US Magistrate Judge on Saturday. It's unclear whether McFarland has an attorney.

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McFarland started Fyre Media in 2016 to "build a digital app that would allow individuals organizing commercial events, such as concerts, to bid for art and celebrity bookings at such events."

McFarland started organizing and promoting the festival in late 2016, along with rapper Ja Rule. The duo used a handful of female celebrities, including Kendall Jenner and Bella Hadid, to promote the event, enticing both investors and wealthy concertgoers to participate.