Jay Clayton, the United States Attorney for the Southern District of New York, announced that Randy Miller and Chad Miller have pled guilty to securities fraud and aggravated identity theft. The charges are related to a scheme to defraud municipal bond investors. The pleas were entered before U.S. Magistrate Judge Robyn F. Tarnofsky, with sentencing scheduled before U.S. District Judge Lewis A. Kaplan at a later date.
"Randy and Chad Miller’s fraudulent actions resulted in nearly total losses for investors," said U.S. Attorney Jay Clayton. "As today’s guilty pleas make clear, this Office remains committed to protecting the integrity of the public finance system and holding accountable those who exploit investors’ trust."
The indictment alleges that Randy and Chad Miller deceived investors in municipal bonds intended for developing Legacy Park, a sports complex in Mesa, Arizona. They misled potential investors during bond offerings by falsifying interest from sports organizations in using or relocating to Legacy Park. The defendants forged documents such as letters of intent from potential customers to falsely show commitment to events at Legacy Park.
These fraudulent documents were presented to prospective bond investors with claims that Legacy Park would be fully occupied upon opening and generate substantial revenue in its first year—claims that were far from reality.
After selling the bonds, Randy and Chad Miller profited personally from the proceeds. However, Legacy Park defaulted on its bonds shortly after opening in 2022 and filed for bankruptcy in May 2023. It was sold for less than $26 million, with only a small fraction going towards repaying bondholders.
Randy Miller, 70, and Chad Miller, 41, both residents of Phoenix, Arizona, pled guilty to one count of securities offering fraud and one count of aggravated identity theft. They face potential sentences totaling seven years in prison each.
Mr. Clayton commended the Federal Bureau of Investigation's work on this case and acknowledged the U.S. Securities and Exchange Commission's parallel civil action.
The case is being prosecuted by Assistant U.S. Attorneys Matthew R. Shahabian and Courtney L. Heavey under the Office’s Securities and Commodities Fraud Task Force.
