SEC v. Randall J. Miller; Chad J. Miller; and Jeffrey De Laveaga, No. LR-26280, Southern District of New York (Apr. 2, 2025) — Press Release
raw: Randall J. Miller; Chad J. Miller; and Jeffrey De Laveaga
Randall J. Miller; Chad J. Miller; and Jeffrey De Laveaga, No. 1:25-cv-02702 (S.D.N.Y. Apr. 2, 2025)
The SEC charged Randall J. Miller, Chad J. Miller, and Jeffrey De Laveaga with defrauding investors in a $284 million municipal bond offering by using fabricated documents.
The SEC charged three Arizona individuals with orchestrating a $284 million fraud involving municipal bonds intended to finance a Mesa, Arizona, sports complex. The defendants allegedly fabricated contracts and letters of intent to present inflated revenue projections to investors. Following a bond default in October 2022, the SEC filed charges for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
The SEC has charged Randall J. Miller, Chad J. Miller, and Jeffrey De Laveaga with defrauding investors through two municipal bond offerings that raised $284 million. The funds were intended to finance a multi-sports park and family entertainment center in Mesa, Arizona, via Randy Miller's nonprofit, Legacy Cares. To secure the investment, the defendants allegedly altered documents and letters of intent to present revenue projections that were significantly higher than actual expected earnings. When the complex opened in January 2022, it generated tens of millions less in revenue than projected, leading to a bond default in October 2022. The SEC's complaint alleges violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. The Commission is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties against the defendants.
Extracted insights
- $284.00M $284 Million $100M–$1B
- $284.00M $284 million $100M–$1B
- agency Securities and Exchange Commission
- person sports complex
- Securities And Exchange Commission charged Randall "Randy" Miller, Chad Miller, and Jeffrey De Laveaga
- Randall "Randy" Miller issued $284 million in municipal bonds through an Arizona state entity
- Defendants fabricated or altered documents forming the basis for revenue projections, including letters of intent and contracts with sports clubs, leagues, and other entities
- Sports Complex generated tens of millions less in revenue than expected under false projections
- Bonds defaulted in October 2022
- Securities And Exchange Commission seeks permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties
- Securities And Exchange Commission charges Randall "Randy" Miller, Chad Miller, and Jeffrey De Laveaga with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26280 / April 2, 2025 Securities and Exchange Commission v. Randall J. Miller, Chad J. Miller, and Jeffrey De Laveaga, No. 1:25-cv-02702 (S.D.N.Y. filed Apr. 1, 2025) SEC Charges Three Arizona Individuals with Defrauding Investors in $284 Million Municipal Bond Offering That Financed Sports Complex On April 1, 2025, the Securities and Exchange Commission charged Randall “Randy” Miller, Chad Miller, and Jeffrey De Laveaga with creating false documents that were provided to investors in two municipal bond offerings that raised $284 million to build one of the largest sports venues of its kind in the United States. As alleged in the SEC’s complaint, in August 2020 and June 2021, Randy Miller’s nonprofit company, Legacy Cares, issued approximately $284 million in municipal bonds through an Arizona state entity to finance the construction of a multi-sports park and family entertainment center in Mesa, Arizona. Investors were to be paid from revenue from the sports complex, and investors were given financial projections for revenue that were multiple times the amount needed to cover payments to investors, according to the complaint. However, the complaint alleges that the defendants fabricated or altered documents forming the basis for those revenue projections, including letters of intent and contracts with sports clubs, leagues, and other entities to use the sports complex. The sports complex opened in January 2022 with far fewer events and much lower attendance and generated tens of millions less in revenue than expected under the false projections, and the bonds defaulted in October 2022, according to the complaint. The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Randy Miller, Chad Miller, and De Laveaga with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties. The SEC’s investigation was conducted by William T. Salzmann, Jonathan Grant, Joseph Chimienti, and Creighton Papier and supervised by David Zhou and Rebecca Olsen of the Public Finance Abuse Unit. They were assisted by Steven Varholik of the San Francisco Regional Office. The litigation will be led by Jason Bussey of the San Francisco Regional Office, Mr. Salzmann, and Mr. Grant.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26280 / April 2, 2025 Securities and Exchange Commission v. Randall J. Miller, Chad J. Miller, and Jeffrey De Laveaga, No. 1:25-cv-02702 (S.D.N.Y. filed Apr. 1, 2025) SEC Charges Three Arizona Individuals with Defrauding Investors in $284 Million Municipal Bond Offering That Financed Sports Complex On April 1, 2025, the Securities and Exchange Commission charged Randall “Randy” Miller, Chad Miller, and Jeffrey De Laveaga with creating false documents that were provided to investors in two municipal bond offerings that raised $284 million to build one of the largest sports venues of its kind in the United States. As alleged in the SEC’s complaint, in August 2020 and June 2021, Randy Miller’s nonprofit company, Legacy Cares, issued approximately $284 million in municipal bonds through an Arizona state entity to finance the construction of a multi-sports park and family entertainment center in Mesa, Arizona. Investors were to be paid from revenue from the sports complex, and investors were given financial projections for revenue that were multiple times the amount needed to cover payments to investors, according to the complaint. However, the complaint alleges that the defendants fabricated or altered documents forming the basis for those revenue projections, including letters of intent and contracts with sports clubs, leagues, and other entities to use the sports complex. The sports complex opened in January 2022 with far fewer events and much lower attendance and generated tens of millions less in revenue than expected under the false projections, and the bonds defaulted in October 2022, according to the complaint. The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Randy Miller, Chad Miller, and De Laveaga with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties. The SEC’s investigation was conducted by William T. Salzmann, Jonathan Grant, Joseph Chimienti, and Creighton Papier and supervised by David Zhou and Rebecca Olsen of the Public Finance Abuse Unit. They were assisted by Steven Varholik of the San Francisco Regional Office. The litigation will be led by Jason Bussey of the San Francisco Regional Office, Mr. Salzmann, and Mr. Grant.