The FBI says Arizona father–son duo made $280M with a ‘lie' meant to ‘exploit' investors. Here's how it worked

Yahoo

21-04-2025

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.