Mobile reports $14.7 million arena fraud

Mobile officials say a criminal financial scam transferred $14.7 million in city funds to a fraudulent entity in a single transaction connected to the ongoing Regions Arena project. Mayor Spiro Cheriogotis said federal authorities, including the FBI and Secret Service, are investigating; the city has also hired legal and forensic firms to examine the fraud and its financial controls, and is pursuing recovery through insurance and other means. Cheriogotis said arena construction is expected to continue, though the loss could affect the timing of other future projects. The city has introduced additional safeguards while withholding details about how the transfer occurred during the investigations.