Upstate New York Businessman Pleads Guilty in $50 Million Ponzi Scheme
Miles “Burt” Marshall, a 74-year-old tax preparer and insurance agent from Hamilton, New York, pleaded guilty Tuesday to charges related to a Ponzi scheme that defrauded investors of over $50 million. The scheme, which operated for decades, targeted neighbors, churches, and local organizations in upstate New York.
Details of the Fraud
Marshall operated the scheme through what was often called the “8% Fund,” promising investors an annual return of 8%. He used money from new investors to pay off earlier investors, a hallmark of a Ponzi scheme. According to a bankruptcy trustee, this practice began as early as 2011. By the time the scheme unraveled, Marshall owed approximately 1,000 people and organizations around $95 million in principal and interest .
Charges and Potential Sentencing
Marshall pleaded guilty to second-degree grand larceny, securities fraud, and first-degree scheme to defraud. New York Attorney General Letitia James announced that Marshall faces a prison sentence of four to 12 years . The indictment against Marshall was secured last summer.
Misuse of Investor Funds
Attorney General James stated that Marshall used the stolen funds for personal expenses, including shopping, vacations, and dining .
Community Impact and Reactions
Marshall, who had been a long-time fixture in the Hamilton community, built trust through word-of-mouth referrals. Dennis Sullivan, an investor who was owed approximately $40,000, expressed disappointment with the sentencing, stating, “I am shocked and a little upset that he didn’t get more time. I don’t sense justice was served” .
Sentencing Date
Marshall is scheduled to be sentenced in Madison County Court on June 11 .
What is a Ponzi Scheme?
A Ponzi scheme is a fraudulent investing operation where the operator generates returns for older investors by acquiring new investors. This is very dangerous because it is based on a constant flow of new investments to continue, and eventually collapses when the new investments stop. The scheme is named after Charles Ponzi, who became notorious for using this tactic in the 1920s.