Mike Miller files lawsuit after losing $1.7M in Ponzi scheme

South Dakota native and NBA player Mike Miller has filed a federal lawsuit against a Ponzi scammer who stopped repaying the money he stole.

The breach of contract lawsuit filed Friday accuses Vincent Puma of violating the agreement.

On May 23, 2011, Puma promised to repay Miller the money he had lost, with interest, according to court documents.

Miller is attempting to recover the $1.7 million he invested into RAHFCO Hedge Funds – a company created by Puma and Randy Hansen.

"Mike intends to hold Mr. Puma accountable for his remaining obligations," said Scott Abdallah, Miller's lawyer. "Mike has already recouped a substantial amount of his investment from Mr. Puma because of safeguards he took with this investment. He intends to hold him accountable for the balance."

Puma and Hansen created fake account statements to show the success of the company's financial strategy and distributed them to investors.

The investors were told RAHFCO traded options and futures on the S&P and in equities.

According to the SEC, from 2007 to 2011, Hansen and Puma drew in more than 100 investors and collected $23.5 million. Court records show Hansen pocketed $1.95 million; Puma $1.65 million.

Losses to individual investors total more than $10 million.