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A father-and-son duo from Phoenix, Arizona, have been indicted on serious fraud charges for deceiving investors in a failed sports complex project.

Randy Miller, 70, and Chad Miller, 41, were arrested on Tuesday and face charges of securities fraud, wire fraud, conspiracy, and aggravated identity theft.

According to 12News, the case involves Legacy Park, a 320-acre sports and entertainment complex in Mesa, Arizona, which collapsed into bankruptcy in May 2023.

The Millers are accused of raising $284 million in bond offerings during 2020 and 2021 by misleading investors with inflated revenue projections.

Prosecutors say they falsely presented forged documents, including "pre-contracts" and "letters of intent" from sports organizations, promising major events at the park.

However, after the complex's opening in January 2022, attendance and revenue failed to meet expectations, leading to the project's eventual bankruptcy.

Legacy Park Bonds Default, Leaving Investors with Pennies on the Dollar

As the park's financial troubles worsened, Legacy Cares, the company formed by the Millers to manage the project, failed to make any bond payments. Nine months after the park's opening, the bonds defaulted.

The Millers also allegedly misused several hundred thousand dollars, including funds for personal expenses such as a home for Randy Miller and two SUVs.

Authorities report that Legacy Park was sold in a Chapter 11 bankruptcy case for less than $26 million, leaving bondholders with just $2.5 million of the $284 million they were owed, Reuters said.

Among the investors affected were major firms like Vanguard Group and AllianceBernstein. These companies, along with others, had invested in the municipal bonds, believing in the park's success based on the Millers' fraudulent claims.

Prosecutors have also pointed out that the Millers and a third defendant, Jeffrey De Laveaga, misrepresented the number of events that would take place at Legacy Park. They are said to have forged documents on behalf of various athletic organizations, including one that promotes sports for disabled athletes.

The case has drawn attention due to its scale and the high-profile investors involved. The US Securities and Exchange Commission (SEC) has filed civil charges against the Millers and De Laveaga, highlighting the severity of the fraudulent activities.

Legal representatives for the Millers have not yet commented on the charges.