A proposed $3 billion sports and entertainment village near Detroit Metro Airport has turned into a federal fraud case.
Kenneth Bardwell, 66, of West Bloomfield, Michigan, was charged with one count of wire fraud after federal prosecutors said he raised millions from investors for the Motown Sports Village project in Romulus, according to WXYZ.
The project was promoted as a massive youth sports, hospitality, and entertainment campus with courts, rinks, hotels, an arena, an indoor water park, an IMAX theater, restaurants, retail, and other attractions.
Prosecutors said Bardwell used investor money for strip clubs, luxury retail purchases, rental cars, and expenses for himself and associates instead of moving the project toward a land purchase. The charge is an accusation and has not been proven in court.
The Pitch Centered on a Massive Romulus Development
View this post on Instagram
WXYZ reported that Bardwell was chairman and CEO of Motown Sports Group Holdings, the company behind the proposed sports village. Project materials described a 451- to 452-acre development near Detroit Metro Airport, with a 1.15-million-square-foot youth sports facility and an arena seating up to 11,000 people.
The plan was promoted as a destination for youth sports tourism, family entertainment, hotel stays, restaurants, retail, and visitor spending. Earlier public materials said JLL Capital Markets had been engaged to help secure financing, with an initial target of $40 million to $50 million for predevelopment and land financing.
Investors Were Told Their Money Would Buy Land
Federal officials said Bardwell solicited millions of dollars from investors beginning in 2018. Reports summarizing the criminal complaint said he told investors their money would be used to purchase land and develop the project.
Investors were also told that if the land could not be purchased, their money would be returned from an escrow account, according to WXYZ. Prosecutors said Bardwell made little to no effort to buy the land needed for the development.
Feds Say the Money Went to Personal Spending
Instead of using the money as promised, prosecutors said Bardwell spent much of it on personal and lifestyle expenses.
WXYZ, citing federal officials, reported that the spending included gentlemen’s clubs, luxury retail goods, rental cars, and expenses for Bardwell and his associates. The criminal complaint said Bardwell’s banking activity showed an intent to support a lavish lifestyle while continuing to make promises to investors so they would keep giving him money.
Nearly $4 Million Moved Through the Business Account
The complaint said nearly $4 million was deposited into a Motown Sports business account over a 26-month period, according to WXYZ.
Investigators said funds were deposited and withdrawn at nearly a one-to-one rate. Federal officials also pointed to account switching, saying Bardwell and Motown Sports closed multiple accounts and changed banks while money continued moving through the business.
Luxury Purchases Became Part of the Evidence
The complaint also cited specific retail spending. WXYZ reported that federal officials identified nearly $13,000 in high-end purchases from Gucci, Louis Vuitton, Balenciaga, Neiman Marcus, and Foot Locker.
Prosecutors said the issue was not simply that the project failed. The fraud charge centers on investor money raised for land and development, then used for expenses that federal officials said had nothing to do with acquiring the Romulus site or building the sports village.
Romulus Officials Said They Refused Taxpayer Funding
After the charge became public, Romulus Mayor Robert McCraight said the city had supported the concept until concerns forced officials to question the legitimacy of the development. He also said Bardwell had asked for taxpayer funds and that the city refused, according to WXYZ.
The proposed project had been promoted as a major economic development opportunity for the area near Detroit Metro Airport. City officials later referred concerns that developed over time.
The FBI Is Looking for Potential Investors
The FBI is asking anyone who invested money with Motown Sports Group Holdings or Bardwell to come forward. Investigators are also seeking people with information relevant to the investment scheme.
The case currently stands at the criminal complaint stage. Bardwell was charged with wire fraud, and federal officials said the investigation is continuing.
Big Development Pitches Need Paper Trails
Large private development pitches can sound credible when they include renderings, named locations, big financing targets, economic-development language, and references to outside firms. Investors still need documents that show where the money is going, who controls it, and what happens if the land or financing does not close.
Before putting money into a private project, investors can ask for the land purchase agreement, escrow agreement, written use-of-proceeds terms, refund terms, business filings, bank or escrow confirmation, title information, zoning status, and independent verification from any company or public body named in the pitch.
Money should not move only because a project has a website, renderings, a public announcement, or a large projected price tag. Investors should be cautious if promised escrow protections are not backed by documents, if the project sponsor resists independent verification, or if funds are being moved through changing accounts without clear records.
What To Save if a Project Investment Looks Wrong
Investors who believe money was misused should save offering materials, emails, texts, wire records, checks, bank confirmations, escrow claims, refund promises, business names, account numbers, pitch decks, contracts, and screenshots of project websites or social posts.
Anyone who invested with Motown Sports Group Holdings or Bardwell can contact the FBI. Fraud involving wires, online communications, or investment solicitations can also be reported to the FBI’s Internet Crime Complaint Center at IC3.gov.