Matthew Podolsky, Acting United States Attorney for the Southern District of New York, announced charges against two executives, Randy Miller and Chad Miller, accusing them of defrauding investors. The allegations were unveiled in an indictment detailing an alleged scheme to deceive investors out of more than $280 million in municipal bond offerings related to the development of a sports complex in Mesa, Arizona. The father and son, who served as Chairman and CEO of Legacy Sports, were arrested and are scheduled to appear in the U.S. District Court in Arizona.
Acting U.S. Attorney Podolsky commented, "Randy Miller and Chad Miller swindled investors out of over a quarter of a billion dollars by selling municipal bonds they knew were backed by forgeries and lies." He emphasized the commitment to maintaining the integrity of the public finance system and promised accountability for those who undermine it.
Christopher G. Raia, Assistant Director in Charge of the New York FBI Field Office, stated, "Randy and Chad Miller allegedly chose to use a planned sports complex as a means to exploit and defraud investors." Raia reiterated the FBI's dedication to ensuring fairness by holding those suspected of fraud accountable.
The indictment alleges deceptive practices by the Millers from late 2019 to mid-2023. They supposedly presented false information to persuade investors to buy bonds for the Legacy Park project. Misleading documents were allegedly used, falsely indicating strong commitments from potential customers.
In furtherance of their scheme, Randy and Chad Miller are accused of falsifying documents to present inflated occupancy and revenue predictions for Legacy Park. Despite selling bonds totaling over $280 million, the project fell into financial distress soon after its 2022 launch. Unable to meet financial obligations, the park entered bankruptcy in 2023, leaving bondholders with substantial losses.
Randy Miller, 70, and Chad Miller, 41, each face various charges, including conspiracy to commit wire and securities fraud, each carrying potentially lengthy prison sentences. Sentencing decisions are subject to judicial discretion.
The FBI was praised for its work, and gratitude was expressed towards the U.S. Securities and Exchange Commission for its concurrent civil action. The Southern District of New York's Securities and Commodities Fraud Task Force, led by Assistant U.S. Attorneys Courtney L. Heavey and Matthew R. Shahabian, is prosecuting the case.
