The father and son who opened Legacy Park, conceived as a youth sports wonderland in the desert in east Mesa, pleaded guilty on May 28 to federal charges of creating false documents to sell the project to investors.
Randy Miller and his son Chad Miller pleaded guilty before a magistrate judge in a New York court room of two counts. One was securities fraud, for making “false and misleading” statements to investors about how well the park would perform and how the Millers would use bond proceeds.
The second count was for aggravated identity theft. The Millers admitted forging documents that were used to promote the project to investors.
In the indictment, prosecutors said an unnamed co-conspirator said he helped the Millers create phony letters of intent from sports organizations. The indictment quoted from emails between Chad Miller talking about the letters, which prosecutors said were doctored with inflated numbers about events planned for Legacy Park.
According to the U.S. Attorney’s Office for the Southern District of New York, the Millers face a maximum sentence of five years in prison on the securities fraud count. They also face a mandatory two-year sentence for the identify theft charge. Those two years, a news release said, must be served after the sentence on the first charge.
Along with the guilty pleas, Randy Miller was ordered to pay more than $7.2 million. Chad Miller was ordered to pay more than $4.7 million.
Both were set for sentencing on Aug. 26.
The venue went into bankruptcy, causing bondholders to lose all but $2.5 million of the $284 million invested. It sold for one-tenth of its construction cost and now operates under new ownership and a new name: Arizona Athletic Grounds.
Attorneys for the Millers could not immediately be reached for comment.
The Millers were charged April 1 by prosecutors in the Southern District of New York, the U.S. Attorney’s office known for handling financial fraud crimes.
Randy Miller had conceived of the project since at least 1990. It sprung from weekends spent shepherding his kids to various sports events all across the city, sometimes splitting duties with his former wife.
Miller thought of a facility with baseball and softball fields, basketball courts and sand courts for volleyball. Parents could have one kid at a gymnastics meet and another at a soccer tournament and be at one venue, with a bar and grill in the middle to relax between games.
The project was planned in fits and starts. At times, it was set to be located in Tempe, Chandler and north Phoenix.
Randy Miller was accused in court records of bilking people out of their money. He also fell victim to suspected fraudsters himself. Randy Miller filed for bankruptcy twice, court records show.
Randy Miller found an avenue to fund the park through the Arizona Industrial Development Authority.
That authority, created by Gov. Doug Ducey, issued $282 million in bonds for the project with minimal discussion. Because the bonds were issued by a government authority, the investors who bought them didn’t have to pay taxes on the proceeds. That meant they could agree to receive a lower interest payment, giving the project a break on its cost.
The Arizona Industrial Development Authority had lent such support to several large projects, some of them out of state. Those included a prison in Hawaii, a Hilton Garden Inn in Harlingen, Texas, and a resort in Puerto Rico. Four of the projects it approved, including Legacy Park, went into default.
The authority had operated in relative obscurity until The Republic published a story on its activities in 2021. In May 2023, Gov. Katie Hobbs instituted new guidelines for projects approved by the Arizona Industrial Development Authority. That included a focus on affordable housing and renewable energy projects, not sports parks.
As part of a thick document of papers sent to investors were letters from anticipated customers of the park. The indictment said the Millers, along with the unnamed co-conspirator, would take actual letters from the entities and doctor them.
In truth, prosecutors said, a volleyball club had no intention to move its operations to Legacy Park. The organization hosting events for disabled athletes did not generate as much revenue as the fake letter suggested, the indictment said. Same with the performance coaching company.
In a June 2020 email quoted in the indictment, Chad Miller told the co-conspirator, “Here are a few more Consent to Assign forms that need your ‘special touch.’ lol.”
The Securities and Exchange Commission also filed an action against the Millers on April 1. That civil complaint named Jeffrey De Laveaga, the park's former chief operating officer. That complaint asked the court to order the men to "disgorge all ill-gotten gains" from the deal.
After the bonds were issued, the indictment said, the Millers enriched themselves. Chad Miller used bond monies to buy a Cadillac Escalade. Randy Miller used $400,000 to buy a home, the indictment said.
The park opened in January 2022 on long-vacant land that used to hold a track that General Motors used to test cars in the desert heat. Although the facility was often crowded on weekends, it kept bleeding dollars each month, filling spreadsheets with red ink.
Legacy Cares, the nonprofit created to operate the park and facilitate obtaining the funds, filed for bankruptcy protection in May 2023.