Magnises
| Company type | Private |
|---|---|
| Industry | Membership club, financial services |
| Founded | August 2013 |
| Founder | Billy McFarland, Ja Rule |
| Headquarters | New York City , United States |
Area served | United States |
| Products | Membership card linked to existing credit cards |
Magnises was a membership club based in the United States that operated through a card system, co-founded by Billy McFarland and Ja Rule in August 2013. Unlike traditional credit cards issued by banks, the Magnises card functioned by linking to an existing bank-issued credit card rather than being a standalone financial product.
Card benefits
Designed primarily for millennials, the Magnises card drew frequent comparisons to the prestigious American Express "Black Card" (Centurion Card) due to its sleek black metal appearance and exclusive member privileges. Nevertheless, it did not operate as an authentic charge card; instead, it replicated the magstripe information from a user’s current Wells Fargo or Bank of America credit card, effectively acting as a replacement. By the end of 2013, the membership base had grown to approximately 500 individuals. Member advantages included access to VIP clubs, discounts on hotel stays, and invitations to exclusive events.
Business operations
The company initially set up its headquarters in a leased townhouse located in Manhattan's West Village. In 2015, Magnises encountered legal action from its landlord over alleged damage to the property, which McFarland contested; this dispute was resolved through a settlement in January 2016. Subsequently, the company moved its operations to Manhattan’s Chelsea district. By 2016, Magnises was active in both New York City and Chicago, with McFarland asserting that membership numbers had reached into the tens of thousands.
Bankruptcy
After McFarland’s involvement in the fraudulent Fyre Festival unraveled in 2017, Magnises ceased leasing its Chelsea office and discontinued accepting new memberships via its website. The publication The Daily Beast later characterized Magnises as a fraudulent enterprise. In June 2018, McFarland faced arrest for selling fake tickets to events such as the Coachella Festival and the Met Gala, reportedly generating up to $100,000 through these schemes. Ultimately, he received a six-year federal prison sentence for multiple fraud convictions connected to the Fyre Festival scandal.