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(FOX 2) - A 66-year-old Oakland County man has been charged with fraud in connection with a proposed entertainment complex that was allegedly planned to be built next to the Detroit Metro Airport.
Motown Sports Group Holdings, Inc was the company behind a project that would have brought hotels, sporting complexes, water recreation opportunities, and more to Romulus — at least that was what was announced earlier in April in a press release.
But Kenneth Bardwell of West Bloomfield, the operator of the company, never planned to build the massive complex.
He has since been named in a federal complaint out of the Eastern District of Michigan.
Massive Investment Scheme
Big picture view:
Bardwell allegedly sought millions of dollars in investment funds to build a multi-billion dollar sports and entertainment complex in Romulus.
But according to the FBI and U.S. Attorney's office in Detroit, the solicitation of millions of dollars was part of a scheme to steal from investment companies.
In a press release from the Department of Justice, Bardwell told investors the money would be used to purchase land and develop the project, but if the land could not be purchased, the money would be returned to them in an escrow account.
According to a federal complaint, the suspect made "almost no effort towards the purchase of the land to develop the project."
"He instead spent most of the investor funds on gentlemen’s clubs, luxury retail goods, rental cars, and lifestyle expenses for himself and his associates," according to the DOJ.
The backstory:
The initial proposal was a "452-acre sports, entertainment and hospitality destination" that would be built next to Detroit Metro Airport.
The entire development was estimated to cost $3 billion, with approximately $40–$50 million needed to finance the first phase of the project. Among the alleged plans included an IMAX theater, hotels, and an 11,000-seat arena.
Also part of the plan was:
A 1,150,000-square-foot youth sports complex featuring:
- 12 basketball and volleyball courts
- Four hockey rinks convertible to indoor soccer fields
- A half-mile indoor running track.
- Family entertainment amenities like an arcade, bowling, rock climbing and an IMAX theater.
Additional facilities include:
- A 450,000-square-foot indoor water and surf park
- Outdoor football and soccer fields
- A 96-tee golf center
- Three hotels with 2,000 rooms
What they're saying:
The Romulus mayor said the city was disappointing to the city and its residents:
"As mayor, my administration has made economic development for the benefit of our residents a priority. We will work with anyone who can legitimately help us move Romulus forward, because our city deserves the best in housing, retail, and job creation," said Mayor Robert McCraight. "Which is why we were supportive of this concept until receiving numerous contacts forcing us to question the legitimacy of the development. The federal criminal charges appear to be the culmination of important work by federal law enforcement, which includes our referral of concerns that developed over time."
The Source: A news release and previous reporting was cited for this story.