Fyre Festival (2017)
Organizers sold tickets costing from roughly $1,200 to over $12,000 for a luxury music festival in the Bahamas. Guests arrived to tents, cheese sandwiches and no functioning infrastructure, and many contractors went unpaid for work already done. The promoter, Billy McFarland, pleaded guilty to wire fraud.
Guests were stranded and refunded only partially; vendors wrote off large losses.
McFarland was sentenced to six years in prison in 2018. The case became the standard example of prepaid event money spent before the event existed.
Both cases run on the same mechanism: customers pay in full up front, the operator spends the money before delivery, and the shortfall surfaces only when the date arrives.
