A 66 year old man from West Bloomfield is facing federal charges after allegedly orchestrating a massive investment scam centered around a promised sports complex in Romulus, Michigan. Kenneth Bardwell stands accused of wire fraud for raising millions of dollars through Motown Sports Group Holdings and its affiliated real estate arm, claiming the funds would build a sprawling entertainment and youth travel hub. To lure in victims, Bardwell reportedly utilized high profile marketing tactics including billboard advertisements across Detroit, paid television segments, and various crowdfunding platforms where he served as chairman and CEO.
According to documents filed in the U.S. District Court for the Eastern District of Michigan, Bardwell assured investors that their contributions were secure and would either fund the land acquisition or remain protected in an escrow account if the deal fell through. However, investigators allege that very little progress was ever made toward actual construction. While Bardwell continued to tell backers that a deal was imminent, he had apparently spent seven years simply paying small annual deposits to keep a purchase agreement alive without ever securing the twenty eight million dollars required to actually buy the property.
The facade began to crumble when Romulus city officials rejected a request for 152 million dollars in public bonds earlier this year due to legal red flags. Shortly thereafter, law enforcement agencies including the FBI and Birmingham police launched an investigation following reports from disgruntled individuals who suspected their money had vanished. Instead of building a world class athletic facility, prosecutors claim Bardwell diverted the investment capital to fund a lavish lifestyle characterized by expensive rental cars, luxury goods, and frequent trips to gentlemen’s clubs for himself and his associates.
As the investigation continues, authorities say Bardwell finally hit a wall this summer when the firm owning the land refused to grant any further extensions on his holding agreement. Federal agents are now urging anyone who may have invested with Motown Sports Group Holdings or dealt directly with Bardwell to come forward via an online reporting form as they work to determine the full scope of the financial loss suffered by those involved in the scheme.