Former Legacy Sports executives Randy and Chad Miller indicted in New York for defrauding investors of over $280 million through elaborate municipal bond scheme tied to failed Arizona sports complex

New York – In a significant development from the Southern District of New York, former executives of Legacy Sports, Randy Miller and his son Chad Miller, have been indicted for orchestrating a fraudulent scheme involving municipal bonds valued at over $280 million.

The charges were announced by Matthew Podolsky, Acting United States Attorney, alongside Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office. The Millers, who held top positions at Legacy Sports, are accused of using falsified documents to deceive investors about the viability of a sports complex project in Mesa, Arizona, known as Legacy Park.

According to the authorities, from November 2019 through May 2023, the Millers and their associates engaged in a systematic effort to mislead potential investors about the interest from sports organizations and other parties in Legacy Park. They allegedly produced counterfeit binding letters of intent and other documents to falsely represent commitments from various entities. These falsifications were meant to assure investors of significant event attendance and revenue generation that were far from realistic.

The fraudulent activities reportedly extended to forging signatures of potential customers, including those from an organization that promotes sports for disabled athletes, without their knowledge or consent. By presenting these forged documents as part of their investment solicitation, Randy and Chad Miller claimed that the park would be fully occupied from the outset and projected nearly $100 million in revenue during its first year—sufficient to cover the bond repayments.

However, the reality was starkly different. Legacy Park, which opened its doors in 2022, quickly found itself unable to generate the promised revenue and defaulted on bond payments by October of the same year. By May 2023, the project had declared bankruptcy and was sold for a fraction of its supposed value at less than $26 million, leaving the bondholders with losses nearing the total amount invested.

The indictment charges both Randy Miller, 70, and Chad Miller, 41, with conspiracy to commit wire fraud and securities fraud, securities fraud, wire fraud, and aggravated identity theft. The most serious of these charges carry potential maximum sentences of 20 years in prison, with aggravated identity theft adding a mandatory minimum of two years.

The case not only underscores the severity of the allegations but also highlights the efforts of federal authorities to uphold the integrity of the financial markets. The FBI has been commended for its investigative work, and the U.S. Securities and Exchange Commission has initiated a parallel civil action. This ongoing legal battle signals a strong stance against financial fraud, particularly in schemes that jeopardize public trust and investor funds.