Percentage-Based Restitution System

A breakdown of how Billy McFarland's restitution payment system works for his $25-30M fraud conviction.

Personal Income Payment Structure

• Must pay a set percentage of all personal gross income (pretax)
• Percentage varies based on income level
• Gets readjusted every couple months
• Applies to any income he personally receives

Company Revenue Contribution

• His company Pirate gives 10% of all revenue directly to restitution
• Example: If Pirate gets $100K sponsorship deal
  • $10K goes straight to restitution
  • Additional percentage from his personal income/salary portion

Key Aspects of the System

• Calculated on gross income (before taxes)
• Percentage is variable and adjustable
• Combines both personal and business revenue streams
• No fixed monthly payment - tied to actual earnings
• Currently paying more than minimum required amount

Current Financial Situation

• "Broke as hell" in his words
• Has generated ~$170K in revenue since November 1st
• Money goes quickly due to business expenses
• Actively seeking ways to generate income while under restrictions
• Cannot raise securities/investment capital due to SEC restrictions

Challenges

• Deep hole of $25-30M in restitution
• Trying not to focus on total amount to stay motivated
• Must balance business growth with restitution obligations
• Limited in funding options due to legal restrictions
• Needs to maintain consistent income to make meaningful payments