2 sentenced to prison over failed Iowa music festival
Two leaders of a Cedar Rapids tourism board have been ordered to serve time in federal prison for defrauding a bank to support a music festival that lost $2.3 million.
Aaron McCreight, the former CEO of GO Cedar Rapids, was sentenced to 18 months and Douglas Hargrave, the former chief financial officer, to 15 months. The Des Moines Register reports that both also were ordered together to pay more than $1.4 million in restitution.
McCreight and Hargrave previously admitted defrauding a Cedar Rapids bank by misrepresenting revenue projections to get loans for Newbo Evolve. The three-day 2018 music festival staged by Go Cedar Rapids included performances by the band Maroon 5 and singer Kelly Clarkson.
As the event dates approached, the tourism agency did not have the money to, among other things, pay Clarkson or buy alcohol for the concert venue, prosecutors said.
GO Cedar Rapids couldn't repay a $1.5 million loan from Bankers Trust or $800,000 promised to vendors and eventually went out of business.
After his firing, McCreight was hired to run the tourism board in Dothan, Alabama, which stood by him after his charges were announced. The Dothan Eagle reported Thursday that McCreight had resigned.