An upstate New York businessman accused of stealing more than $50 million from hundreds of individuals has pleaded guilty to charges related to a massive Ponzi scheme, the state attorney general announced Tuesday.
Guilty Plea and Charges
Miles “Burt” Marshall, 74, pleaded guilty to second-degree grand larceny, securities fraud, and first-degree scheme to defraud. He faces a prison sentence of four to 12 years, according to the attorney general's office, which secured an indictment against him last summer.
Decades-Long Scheme
Marshall, who prepared taxes and sold insurance in the village of Hamilton near Colgate University, operated what was sometimes called the “8% Fund,” promising that annual interest rate. For decades, he accepted money from neighbors, churches, and local organizations, often through word-of-mouth referrals.
A bankruptcy trustee later determined that by 2011, Marshall had been using new investor funds to pay off previous investors—a classic Ponzi scheme. He eventually owed nearly 1,000 people and organizations approximately $95 million in principal and interest.
Misuse of Funds
Attorney General Letitia James stated that Marshall also spent investors' money on shopping, vacations, and restaurants. “Miles Burton Marshall scammed his clients out of their life savings and used their hard-earned money to fuel a classic Ponzi scheme,” James said in a prepared release.
An email seeking comment was sent to Marshall's attorney. He is scheduled to be sentenced in Madison County Court on June 11.
Victim Impact
Dennis Sullivan, who was owed about $40,000, expressed disappointment: “I am shocked and a little upset that he didn’t get more time. I don’t feel justice was served. He has ruined so many of our lives.”
Marshall had consistently paid interest and processed withdrawals for many years. However, he filed for Chapter 11 bankruptcy protection in 2023 after a hospitalization for a heart condition and a subsequent run on note holders demanding their money back. He declared over $90 million in liabilities and $21.5 million in assets.
