Fyre Festival founder Billy McFarland, who pleaded guilty to two counts wire fraud in March, was charged Tuesday with running a fraudulent ticket-selling scam while he was out on bail and faces new charges, federal prosecutors told the New York Times on Tuesday.

McFarland was rearrested Tuesday and charged with earning $100,000 by selling fake tickets to events including the Coachella Festival and the Met Gala through NYC VIP Access, a company he controlled, and attempted to hide his involvement by sending sale proceeds to other people’s bank accounts, according to multiple news reports.

The charges add third count of wire fraud onto the existing two counts, as well as a count of money laundering. Each of the four counts carries a maximum sentence of 20 years in prison, although, on the initial charges at least, he was realistically looking at a much lighter sentence.

Prosecutors said McFarland, 26, began running the scheme late last year,...