This wasn't the first time McFarland had come under scrutiny for questionable businesses. Find out more about his wild life below.
Until April 2017, Billy McFarland was relatively unknown outside of the New York elite clubbing scene, but this changed overnight when Fyre Festival, the VIP party that turned into a nightmare situation as attendees were stranded with half-built huts to sleep in and cold cheese sandwiches to eat, lit up social media.
Billy McFarland was raised in New Jersey by two real-estate developers. He set up his first business — a service that matched websites and designers — at the tender age of 13.
It wasn't until 2013 that the then-22-year-old McFarland started to make a name for himself with Magnises, an elite club for New York millennials, which was accessed with the club's black card.
Magnises was run out of a West Village townhouse. Members were invited to come and hang out or attend cocktail parties, dinners, art shows, and lectures.
The membership, which cost $250, was also meant to give members discounted access to exclusive events.
But it transpired that Magnises wasn't delivering on its promises.
By this point, McFarland was already on to his next venture, Fyre Festival, a live music festival that would take place in the Bahamas over two weekends at the end of April and May 2017.
It was described as an "immersive music festival" with tickets costing north of $1,200.
Guests were told they would fly in from Miami on a custom Boeing 737 to have the full VIP experience.
Instead, they ended up waiting for hours at the airport and collecting their luggage from the back of a shipping container in the dead of night.
Guests were expecting gourmet food and luxurious tents to sleep in.
Partygoers were left to scramble to get off the island.
In May 2017, McFarland and Ja Rule were sued for $100 million in a class-action lawsuit.
In March 2018, McFarland pleaded guilty to two counts of wire fraud.
He was arrested again on June 12 in a separate fraud case. He was charged with earning $100,000 from selling fake tickets to events including Coachella and the Met Gala through a company called NYC VIP Access.
On June 19, a judge revoked his bail, deeming him a flight risk.
Later that month, McFarland pleaded guilty to one count of fraud related to the NYC VIP Access ticket scheme.
Before his sentencing in October, McFarland's attorney, Randall Jackson, asked the judge to give him a lighter sentence, citing a psychiatrist report that said he was diagnosed with a bipolar-related disorder.
On October 11, McFarland was sentenced to six years in prison.
This week, two highly anticipated TV shows documenting the wild Fyre Festival saga were released. One version features an interview with McFarland.