The FBI says Arizona father–son duo made $280M with a ‘lie' meant to ‘exploit' investors. Here's how it worked
Arizona father and son, Randy and Chad Miller, have reportedly been indicted in an alleged scheme that targeted investors looking to fund a sports complex.
The elaborate plot, which resulted in more than $280 million in defrauded funds, involved municipal bonds linked to a large sports complex in the city of Mesa.
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Federal prosecutors allege the pair deceived investors about prospective interest in the use of Legacy Park (formerly Bell Bank Park). The Millers used forged documents to sell what were essentially worthless bonds, according to prosecutors.
The father–son duo now face four major charges, with victims ranging from individuals to organizations, including one that promotes athletes living with disabilities.
According to federal investigators, the Millers orchestrated an elaborate fraud centered on Legacy Park, a massive sports venue near Mesa Gateway Airport.
The pair reportedly created fake demand by forging "binding" letters of intent from sports groups and customers, falsely claiming that the venue would be fully occupied and generate more than $100 million in its first year — more than enough to cover bond payments.
In some instances, prosecutors allege that the Millers directed others to sign letters without permission or copied forged signatures onto fabricated documents.
'Essentially, the Millers made solicitations … particularly through bonds that were based on false statements and misrepresentations,' criminal defense attorney Jason Lamm told AZ Family.
The fraudulent documents misled investors into believing the project had significant, credible backing. However, the project began unraveling soon after opening in 2022.
By October of that year, the park had defaulted on its bond payments and filed for bankruptcy the following spring. Despite the estimated $284 million raised, federal officials say less than $2.5 million was ultimately used to repay bondholders. The complex was eventually sold for less than $26 million.
The FBI's assistant director in charge, Christopher G. Raia, remarked to AZ Family: 'Randy and Chad Miller allegedly chose to use a planned sports complex as a means to exploit and defraud investors … the FBI will continue to ensure a level playing field by holding fraudsters accountable.'
Prosecutors said the money was allegedly used to enrich the Millers personally, with things like a home, SUVs and inflated salaries.
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The father-son duo has been charged with conspiracy to commit wire fraud and securities fraud, one count of securities fraud, one count of wire fraud and one count of aggravated identity theft.
'The Millers allegedly executed the scheme using fraudulent documents to lie about the status of the proposed project in order to raise hundreds of millions of dollars which they used to enrich themselves,' Raia said.
Investment scams involving municipal bonds or large development projects often prey on good intentions, especially when tied to community efforts.
Awareness and skepticism are your best defense. Here are some red flags and practical tips to avoid being deceived.
Lack of transparency. If financial documents, contracts or project plans aren't readily available, that's a warning sign.
Pressure to act quickly. Scammers often create a sense of urgency to discourage due diligence.
Unrealistic returns or projections. Promises of high or guaranteed returns, especially on municipal bonds, should raise suspicion.
Missing independent verification. If third-party audits or evaluations are unavailable, it may signal fraudulent intent.
Follow these tips to protect yourself:
Verify bond issuers. Check with the Municipal Securities Rulemaking Board and Electronic Municipal Market Access database to confirm a bond offering's legitimacy.
Consult financial advisors. Before investing significant sums, especially in unfamiliar financial products, speak with a licensed investment advisor or securities attorney.
Research the project thoroughly. Look for third-party confirmations, such as news reports, planning commission documents or business filings.
Don't rely on just the pitch. If the only source of information is the promoter, it's time to ask questions and dig deeper.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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San Francisco Chronicle
20 minutes ago
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Here's what to know about American Samoans in Alaska who are being prosecuted after trying to vote
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It would also allow the Department of Homeland Security to waive personal interviews of U.S. nationals as part of the process and to reduce fees for them. ___ Bohrer reported from Juneau, Alaska, and Johnson from Seattle.
Yahoo
21 minutes ago
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Failed Muni Bond Draws FBI and Sparks `Ponzi-Like Fraud' Claims
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Back in a September 2023 board meeting, the Groton commissioners had asked Capelletti about the cash used to pay off Titan, which was recorded as an expense for the Groton 2030 project. They were assured they'd be reimbursed when the bond deal closed, minutes of the meeting show. But the Meriden lawsuit raised new questions, and when Groton commissioners started digging, they found that companies controlled by Cappelletti had bought properties in Winchester, Connecticut, and Fitchburg, Massachusetts to redevelop. Cappelletti also allegedly forged a resolution to approve $2.7 million of lease agreements for the authority, according to the February lawsuit filed by the Groton agency. 'This case involves the discovery of a massive Ponzi-like fraud,' lawyers for the agency said in a court filing. 'Over the course of at least seven years, Cappelletti accepted millions of dollars in funds from non-commercial lenders or other questionable entities.' 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Hamilton Spectator
22 minutes ago
- Hamilton Spectator
Here's what to know about American Samoans in Alaska who are being prosecuted after trying to vote
WHITTIER, Alaska (AP) — FOR MOVEMENT AT 9 A.M. EASTERN ON SATURDAY, 6/7. WITH VOTING-AMERICAN SAMOANS MAINBAR. They were born on U.S. soil, are entitled to U.S. passports and allowed to serve in the U.S. military, but 11 people in a small Alaska town are facing criminal charges after they tried to participate in a fundamental part of American democracy: voting. The defendants, who range in age from their 20s to their 60s, were all born in American Samoa — the only U.S. territory where residents are not automatically granted citizenship at birth. Prosecutors say they falsely claimed American citizenship when registering or trying to vote. The cases are highlighting another side of the debate over exaggerated allegations of voting by noncitizens , as well as what it means to be born on American soil, as President Donald Trump tries to redefine birthright citizenship by ending it for children of people who are in the country illegally. Here's what to know about the prosecutions in Alaska and the status of American Samoans when it comes to voting. What is the Alaska case about? The investigation began after Tupe Smith, a mom in the cruise-ship stop of Whittier, decided to run for a vacant seat on the regional school board in 2023. She was unopposed and won with about 95% of the vote. That's when she learned she wasn't allowed to hold public office because she wasn't a U.S. citizen. Smith says she knew she wasn't allowed to vote in federal elections but thought she could vote in local or state races, and that she never would have voted if she knew it wasn't legal. She says she told elections workers that she was a U.S. national, not a citizen, and was told to check a box saying she was a citizen anyway. About 10 months later, troopers returned to Whittier and issued court summonses to her husband and nine other American Samoans. While Smith appeals the charges against her, the state filed charges against the others in April. The state argues that Smith's false claim of citizenship was intentional, and her claim to the contrary was undercut by the clear language on the voter application forms she filled out in 2020 and 2022. The forms said that if the applicant did not answer yes to being over 18 years old and a U.S. citizen, 'do not complete this form, as you are not eligible to vote.' Why can't American Samoans vote in the U.S.? The 14th Amendment to the Constitution promises U.S. citizenship to those born on U.S. soil and subject to its jurisdiction. American Samoa has been U.S. soil since 1900, when several of its chiefs ceded their land and vowed allegiance to the United States. For that reason, Smith's lawyers argue, American Samoans must be recognized as U.S. citizens by birthright, and they should be allowed to vote in the U.S. But the islands' residents have never been so considered — Congress declined to extend birthright citizenship to American Samoa in the 1930s — and many American Samoans don't want it. They worry that it would disrupt their cultural practices, including communal land ownership. The 10th U.S. Circuit Court of Appeals cited that in 2021 when it declined to extend automatic citizenship to those born in American Samoa, saying it would be wrong to force citizenship on those who don't want it. The Supreme Court declined to review the decision. People born in all other U.S. territories — Puerto Rico, the U.S. Virgin Islands, the Northern Mariana Islands and Guam — are U.S. citizens. They can vote in U.S. elections if they move to a state. American Samoans can participate in local elections on American Samoa, including for a nonvoting representative in Congress. Have other states prosecuted American Samoans for trying to vote? Supporters of the American Samoans in Whittier have called the prosecutions unprecedented. One of Smith's attorneys, Neil Weare, suggested authorities are going after 'low-hanging fruit' in the absence of evidence that illegal immigrants frequently cast ballots in U.S. elections. Even state-level investigations have found voting by noncitizens to be exceptionally rare. In Oregon, officials inadvertently registered nearly 200 American Samoan residents to vote when they got their driver's licenses under the state's motor-voter law. Of those, 10 cast ballots in an election, according to the Oregon Secretary of State's office, but officials found they did not intend to break the law and no crime was committed. In Hawaii, one resident who was born in American Samoa, Sai Timoteo, ran for the state Legislature in 2018 before learning she wasn't allowed to hold public office or vote. She also avoided charges. Is there any legislation to fix this? American Samoans can become U.S. citizens — a requirement not just for voting, but for certain jobs, such as those that require a security clearance. However, the process can be costly and cumbersome. Given that many oppose automatic citizenship, the territory's nonvoting representative in Congress, Aumua Amata Coleman Radewagen, has introduced legislation that would streamline the naturalization of American Samoans who do wish to become U.S. citizens. The bill would allow U.S. nationals in outlying U.S. territories — that is, American Samoa — to be naturalized without relocating to one of the U.S. states. It would also allow the Department of Homeland Security to waive personal interviews of U.S. nationals as part of the process and to reduce fees for them. ___ Bohrer reported from Juneau, Alaska, and Johnson from Seattle. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
