Father and Son Admit to $284M Fraud for Huge Sports Complex

A father and son duo, Randy and Chad Miller, have confessed to engaging in a fraudulent $284M bond operation scam that conned numerous major investors regarding the potential of a vast sports complex in Mesa, Arizona.

Randall and Chad Miller managed to secure $284M from prominent investors to actualize the 130-acre Legacy Park. However, the park was sold for a mere $26M shortly after its inauguration and was rebranded as the Arizona Athletic Grounds.

The duo allegedly falsified letters of intent and misrepresented that they had secured contracts with renowned soccer club Manchester United and other teams to receive $284M in municipal bonds via the state of Arizona for the development of Legacy Park. The Department of Justice and the Securities and Exchange Commission filed individual lawsuits against the Millers last month. Subsequently, they pleaded guilty to securities fraud and aggravated identity theft in a federal court in Manhattan.

According to reports from Bloomberg, in exchange for pleading guilty, prosecutors agreed to a sentence of less than seven years and a fine ranging from $40K to $400K. Randy Miller agreed to forfeit around $7.3M, while Chad will surrender approximately $4.8M.

Major organizations such as Vanguard Group, AllianceBernstein Holding, Macquarie Group, and NBA player Russell Westbrook were among the victims of the fraudulent scheme. These entities had invested substantial amounts in bonds associated with the development of Legacy Park.

Christopher Raia, the FBI Assistant Director in Charge, expressed disappointment in the Millers’ actions, emphasizing that family bonds through sports were exploited for deceptive financial gains.

Legacy Park, which commenced operations in early 2022, failed to generate sufficient revenue to meet its monthly bond obligations. By October 2022, the complex had defaulted, and in May 2023, it succumbed to bankruptcy proceedings. The subsequent sale of the park for less than $26M resulted in significant losses for bondholders, with only a fraction of the owed $284M being repaid.

The 320-acre facility is now known as the Arizona Athletic Grounds, owned by private investment firm Rocky Mountain Resources. Reports from a local ABC affiliate in March 2024 indicated that the park was projected to break even by the conclusion of the previous year. The saga of the Legacy Park scandal serves as a cautionary tale, highlighting the repercussions of fraudulent financial endeavors.