accused of stealing more than $50 million<\/a> from hundreds of people in upstate New York as part of a massive Ponzi scheme pleaded guilty Tuesday to charges stemming from the fraud, according to the state attorney general.<\/p>\nMiles \u201cBurt\u201d Marshall faces four to 12 years in prison after pleading guilty to second-degree grand larceny, securities fraud and first-degree scheme to defraud, according to the attorney general’s office, which secured an indictment against him last summer.<\/p>\n
Marshall, 74, prepared taxes and sold insurance in the quaint village of Hamilton, near Colgate University. For decades, he also took money for what was sometimes called the \u201c8% Fund,\u201d which guaranteed that much in annual interest. He took money from neighbors, churches and area organizations, with referrals often coming through word-of-mouth.<\/p>\n
A bankruptcy trustee later determined that Marshall had been using new investment money to pay off previous investors by 2011. He eventually owed almost 1,000 people and organizations about $95 million in principal and interest, according to the trustee.<\/p>\n
Attorney General Letitia James said Marshall also spent his investors\u2019 funds on shopping, vacations and restaurants.<\/p>\n
\u201cMiles Burton Marshall scammed his clients out of their life savings and used their hard-earned money to fuel a classic Ponzi scheme,\u201d James said in a prepared release.<\/p>\n
An email seeking comment was sent to Marshall\u2019s attorney.<\/p>\n
Marshall is scheduled to be sentenced in Madison County Court on June 11.<\/p>\n
\u201cI am shocked and a little upset that he didn\u2019t get more time. I don\u2019t feel justice was served,\u201d Dennis Sullivan, who was owed about $40,000, wrote in a text after the plea. \u201cHe has ruined so many of our lives.\u201d<\/p>\n
Marshall had made good on his promises to pay interest and process withdrawals for many years. But he filed for Chapter 11 bankruptcy protection in 2023 after a hospitalization for a heart condition and a subsequent run on note holders asking for their money back. He declared more than $90 million in liabilities and $21.5 million in assets.<\/p>\n<\/div>\n
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