Our favorite dogged and ambitious music entrepreneur is back at it again. Billy McFarland, the Lionel Hutz of the music industry, settled with the Securities and Exchange Commission (SEC) and agreed to repay $27.4 million. This is in addition to McFarland being found guilty for two counts of wire fraud. This agreement with the SEC is in regard to Magnises, a fake credit card company that misled more than 100 investors. The money from the investors went to fund McFarland rock n’ roll lifestyle of private jets, boats and partying.
The SEC press release states the following: “McFarland induced investors to entrust him with tens of millions of dollars by fraudulently inflating key operational, financial metrics and successes of his companies, as well as his own personal success – including by giving investors a doctored brokerage account statement purporting to show personal stock holdings of over $2.5 million when, in reality, the account held shares worth under $1,500.”
The SEC officially charge McFarland and his two henchmen, Grant Margolin and Daniel Simon with obstructing antifraud provisions. Additionally, McFarland is barred from serving as either an officer or director of a public company. Truly an inspiration.