>> Martha: THE COFOUNDER OF
THE FIRE MUSIC FESTIVAL,
SCAMMING THOUSANDS OF
MILLENNIALS INTO A NIGHTMARE OF
WHITE TENTS, COLD CHEESE
SANDWICHES, AND NO WATER, NOW A
LEGAL BATTLE, THAT COULD BE THE
BEGINNING OF HIGH PROFILE
SUPERMODELS AND INFLUENCERS
INVOLVED WITH PROMOTING THIS
EVENT, TRACE GALLAGHER LIVE IN
THE WEST COAST NEWSROOM WITH THE
BACK STORY ON THIS ONE TONIGHT,
HOLLOW, TRACE.
>> HELLO, THIS ALL BEGAN AS AN
APP, WAS SUPPOSED TO BE THE UBER
OF BOOKING TALENT, YOU WOULD LOG
ON, PAY THE FEE, AND SHE WOULD
BE THERE.
THE BRAINCHILD OF BILLY
McFARLAND WHO IS WORKING WITH
THE WRAPPER JOB RULE, THEN THE
APP MORPHED INTO FYRE FESTIVAL,
COMPLETE WITH A LIST PERFORMERS,
LUXURY ACCOMMODATIONS, AND FIVE
STAR CUISINE, TO PROMOTE TO THE
FESTIVAL, BILLY BILLY McFR
FESTIVAL, BILLY BILLY McFA
FESTIVAL, BILLY BILLY McFD
FESTIVAL, BILLY BILLY McFF
FESTIVAL, BILLY BILLY McFE
FESTIVAL, BILLY BILLY McFW
IN BELLA HADID, HAILEY BIEBER,
EMILY RATAJKOWSKI, ELSA HOSK,
AND KENDALL JENNER TO SHOOT
VIDEOS ON A SUPER GOD, AND IT
WORKED.
WITHIN 48 HOURS, 95% OF TICKETS
WERE SOLD AT PRICES RANGING
FROM -- $100,000.
BUT AS THEY POINT OUT, THE
FESTIVAL NEVER HAPPENED, AND NOT
ONLY DID FANS LOSE TENS OF
THOUSANDS OF DOLLARS WHEN FYRE
FILED FOR BANKRUPTCY, THE MOGULS
WERE NEVER PAID TO, AND HERE IS
PART OF THE HULU DOCUMENTARY.
>> HAS ANYBODY EVER CALLED YOU A
COMPULSIVE LIAR?
>> I'VE BEEN CALLED A LOT OF
THINGS SINCE THE FESTIVAL.
>> BILLY McFARLAND IS SERVING
SIX YEARS IN FRONT FEDERAL
PRISON FOR FRAUD.
INFORMATION IS HARD TO OBTAIN,
SO NOW AS PART OF THE BANKRUPTCY
CASE, A JUDGE IS ALLOWING THE
AGENCIES THAT REPRESENT THE
SUPERMODELS WHO PROMOTED THE
FYRE FESTIVAL TO BE SUBPOENAED
TO FIND OUT HOW MUCH THEY WERE
PAID TO PROMOTE THE EVENT.
THE HOPE IS TO FIGURE OUT WHAT
HAPPENED TO THE MILLIONS OF
DOLLARS IN TICKET SALES.
MANY OF THE MODELS WE SHOULD
KNOW TO HAVE GONE ON
SOCIAL MEDIA SAYING THAT THEY
NEVER REALIZED THE FESTIVAL WAS
A GIANT FRAUD.
>> Martha: THANK YOU VERY
MUCH, JOINING ME NOW, CRIMINAL
DEFENSE ATTORNEY, MARKET, THIS
IS GETTING A TON OF ATTENTION ON
NETFLIX AND HULU, LOTS OF PEOPLE
WATCHING THIS.
TELLING THE STORY OF BILLY
McFARLAND WHO WILL DO SIX
YEARS IN JAIL FOR FRAUD.
WHAT ABOUT THE NEWEST WRINKLE
HERE THAT SORT OF OPENS UP THE
WHOLE CAN OF WORMS ABOUT THE
INSTAGRAM AND SOCIAL MEDIA
INFLUENCERS, AND HOW MUCH
CULPABILITY THEY MAY HAVE?
>> MARTHA, I HAVE NO PROBLEM
WITH THEM BEING FORCED TO COME
INTO COURT AND SAY EXACTLY WHAT
THEY WERE PAID.
THERE ARE 26 MILLION REASONS WHY
I THINK THE JUDGE SHOULD
CONTINUE DOWN THE PATH THAT THEY
HAVE ALREADY GONE DOWN.
PEOPLE INVESTED THEIR HARD
EARNED OUR LETTERS THINKING THIS
WAS ONE THING, AND BILLY
McFARLAND IS A BIG FAT FRAUD,
YOU NEED TO FIND OUT WHERE THE
MONEY WENT, AND THERE IS NO
SUPERMODEL PRIVILEGE.
>> Martha: THEY NEED TO KNOW
HOW MUCH HE PAID THESE DIFFERENT
MODELS, AND WHETHER OR NOT THEY
GOT THEIR MONEY, THEN ARE THEY
GOING TO CALL IT BACK AND TRY TO
GIVE REPARATIONS TO SOME OF
THESE PEOPLE WHO LOST THEIR
MONEY?
>> NO, LIKELY NOT, BUT WE
BELIEVE THAT THEY GOT MILLIONS
OF DOLLARS, WHY?
BECAUSE BILLY McFARLAND SAID
SO?
I WOULD NOT BELIEVE THAT.
I WOULD NOT BELIEVE ANYTHING
THAT FLOWS FROM HIS LIPS, LET
THEM COME INTO COURT AND SAY
THAT THEY PAID THEM $255,000,
KENDALL JENNER WILL SAY THAT I
AM GOING TO FYRE.
BECAUSE NOW YOU HAVE TO SAY IT
WAS AN ADVERTISEMENT, I WAS NOT
GOING, THEY WERE PAYING ME TO DO
SO.
THEY HAVE A CERTAIN LEVEL OF
CULPABILITY IF THEY HAD ANY IDEA
THAT THIS WAS AS FRAUDULENT AS
IT WAS.
>> Martha: I'M SURE THAT THERE
A LOT OF PEOPLE OUT THERE THAT
DO NOT UNDERSTAND THE EXTENT TO
HOW MUCH YOU CAN MAKE BEING IN
INSTAGRAM OR -- INFLUENCE ON
SOCIAL MEDIA.
FOR EXAMPLE, THESE ARE THE TOP
TEN INFLUENCERS ON SOCIAL MEDIA.
KYLIE JENNER AT THE TOP OF THE
LIST, EVERYBODY KNOWS THAT SHE
IS THE YOUNGEST BILLIONAIRE IN
THE COUNTRY.
AND SELENA GOMEZ IS ON THAT LIST
AS WELL, IF THEY WEAR A PAIR OF
SHOES, SHE CAN GET, KYLIE JENNER
CAN GET $1 MILLION FOR WEARING A
PAIR OF SHOES ON INSTAGRAM,
RIGHT?
>> INSANE, ALL IT TAKES IS ONE
GUY, WHO BY THE WAY, HIS CLAIM
TO FAME WAS SOME CREDIT CARD
COMPANY THAT MOST PEOPLE
COMPLAINED ABOUT.
HE WAS A FRAUDSTER BEFORE HE
STARTED.
ALL HE DID WAS TAKE PEOPLE'S
MONEY, BUY THE INFLUENCE AND
THEN HE SELLS OUT A FESTIVAL.
THIS IS LUDICROUS, MARTHA.
I HAVE NO PROBLEM WITH THEM
BEING BROUGHT INTO COURT TO TRY
TO ACCOUNT FOR WHERE THE MONEY
WENT.
>> Martha: LEADING TO SOME
MORE ACCOUNTABILITY WITH THE
INFLUENCERS AND THE IMPACT THAT
THEY HAVE, OR --
>> NO, IT SHOULD.
IT SHOULD ABSOLUTELY LEAD TO
MORE ACCOUNTABILITY, ESPECIALLY
WHEN THERE IS FRAUD BEHIND IT.
THIS IS VERY DIFFERENT, YOU HAVE
PEOPLE WHO INVESTED THEIR MONEY,
AND THEY HAVE TO FIGURE OUT
WHERE IT WENT.
IF IT WENT TO THE SUPERMODELS,
OKAY, THERE IS NO MONEY TO BE
FOUND.