Yet, speaking on May 2 with unnerved employees at his TriBeCa office with its $30,000 sound system and frequent fashion-model visitors Mr. McFarland deflected blame and vowed that Fyre would survive to mount another festival next year. The coverage had been sensationalized, he insisted, according to a recording obtained by The New York Times. (Fyre has attributed its cancellation to a combination of factors, including the weather.)
Ja Rule, the rapper and Mr. McFarlands celebrity business partner, looked on the bright side. The whole world knows Fyres name now, he said. This will pass, guys.
Their company, Fyre Media, however, was already facing the first of more than a dozen lawsuits seeking millions and alleging fraud, breach of contract and more.
The endeavor has also become the focus of a criminal investigation, with federal authorities looking into possible mail, wire and securities fraud, according to a source with knowledge of the matter, who was not authorized to discuss it. The investigation is being conducted by the United States attorneys office for the Southern District of New York and the F.B.I.; it is being overseen by a prosecutor assigned to the complex frauds and cybercrime unit. (A spokesman for the United States attorneys office and a spokeswoman for the F.B.I. declined to comment.)