Miles “Burt” Marshall, 74, of Hamilton, New York, pleaded guilty Tuesday to charges stemming from a decades-long Ponzi scheme that defrauded hundreds of investors out of more than...
Marshall pleaded guilty to second-degree grand larceny, securities fraud, and first-degree scheme to defraud in Madison County Court.
For decades, Marshall operated as a tax preparer and insurance salesman in the village of Hamilton, near Colgate University.
Miles “Burt” Marshall, 74, of Hamilton, New York, pleaded guilty Tuesday to charges stemming from a decades-long Ponzi scheme that defrauded hundreds of investors out of more than $50 million, New York Attorney General Letitia James announced.
Marshall pleaded guilty to second-degree grand larceny, securities fraud, and first-degree scheme to defraud in Madison County Court. He faces between four and 12 years in prison when sentenced on June 11, according to the Attorney General’s office.
For decades, Marshall operated as a tax preparer and insurance salesman in the village of Hamilton, near Colgate University. Simultaneously, he solicited investments for what became known as the “8% Fund,” promising investors an annual return of 8%, according to court documents and the Attorney General’s office.
The scheme began to unravel when a bankruptcy trustee determined that Marshall had been using funds from new investors to pay off earlier investors as early as 2011. By the time the scheme collapsed, Marshall owed approximately 1,000 people and organizations around $95 million in principal and interest.
Investors Lost Life Savings
Attorney General James stated that Marshall misappropriated investors’ funds for personal expenses, including shopping, vacations, and dining.
Miles Burton Marshall scammed his clients out of their life savings and used their hard-earned money to fuel a classic Ponzi scheme,”
Miles Burton Marshall Attorney General Letitia James Dennis
Attorney General Letitia James said in a prepared release.
Dennis Sullivan, who was owed approximately $40,000, expressed disappointment with the sentencing. “I am shocked and a little upset that he didn’t get more time. I don’t feel justice was served,” Sullivan wrote in a text message, according to the New York Post.
Long-Running Scheme
Marshall’s scheme relied heavily on word-of-mouth referrals, attracting investments from neighbors, churches, and local organizations. The Attorney General’s office secured an indictment against Marshall last summer, leading to Tuesday’s guilty plea.
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The case highlights the vulnerability of investors to Ponzi schemes, which rely on attracting new money to pay existing investors, rather than generating legitimate profits. These schemes inevitably collapse when the influx of new investors slows down, leaving many with substantial losses.
The investigation was conducted by the Attorney General’s Investor Protection Bureau.
