The festival seemed like it was a tragic project run spectacularly into the ground by a sociopath with serious psychological issues. I mean, if it were "a scam" there would have been a "take-the-money-and-run" attempt. A scam is an intentional deception in order to gain profit at someone else's expense-- this wasn't that.
Instead, things just crashed horribly around him, a lot of people got stiffed, the concert goers ended up at an expensive vacation from hell but the promoters didn't make money (though they did get some beach time with super-models before the horrific project-death-march started).