The way Randi's million dollar challenge works is not quite the way you think. As it says on his own page:
QUOTE
The JREF does not involve itself in the testing procedure, other than helping to design the protocol and approving the conditions under which a test will take place. All tests are designed with the participation and approval of the applicant. In most cases, the applicant will be asked to perform a relatively simple preliminary test of the claim, which if successful, will be followed by the formal test.
In other words, you make your application and state what wacky thing it is you can claim to do. Then they help to define the test, with your approval. If you can pass, you win. The real key here is that for most of the claims made that are questionable, the people making the claims failed to apply at all. If you're not even willing to try to define a valid scientific test for your claim with the JREF, that pretty much sums it up, I think. I mean, if you really can tell a difference, and can prove it in a rational scientific manner, then wouldn't you give it a shot? If the JREF made unreasonable conditions to win the prize, you could publicize the fact. The fact that this has never occurred sorta points to something.
Randi is basically a professional sceptic and debunker. I doubt he'd pull a fraud when that could cost him quite a bit more than a million bucks, in the long run.