Miles Burton Marshall accused of running decades-long Ponzi scheme that stole $50 million WAMPSVILLE — A Madison County tax preparer and insurance agent was indicted in Madison County Court for allegedly operating a Ponzi scheme for more than three decades that bilked 988 investors out of more than $50 million, New York State Attorney General […]
Miles Burton Marshall accused of running decades-long Ponzi scheme that stole $50 million
WAMPSVILLE — A Madison County tax preparer and insurance agent was indicted in Madison County Court for allegedly operating a Ponzi scheme for more than three decades that bilked 988 investors out of more than $50 million, New York State Attorney General (AG) Letitia James announced on June 9.
The 49-count indictment charged Miles Burton Marshall with 21 counts of second-degree grand larceny, three counts of third-degree grand larceny, 24 counts of securities fraud under the Martin Act, and one count of first-degree scheme to defraud.
Marshall was arraigned in Madison County Court in Wampsville on June 9 and released on his own recognizance. He was required to surrender his passport and ordered not to leave the state. If convicted, Marshall faces a maximum sentence of up to 10 to 20 years in prison.
According to the state attorney general, Marshall solicited clients to invest millions in his “eight percent fund,” claiming investors’ funds would be primarily used for real property investments. Instead, Marshall allegedly used the funds to pay investment returns to prior investors along with his personal expenses and the expenses of his other businesses.
“For over three decades, Miles Burton Marshall fooled his community into believing he was a trusted businessman when in reality, he was scamming his clients and neighbors out of their life savings,” James said in the announcement.
A long-term investigation led by the Office of the Attorney General’s Criminal Enforcement and Financial Crimes Bureau revealed that beginning in the early 1990s and continuing through March 2023, Marshall solicited potential investors, including his tax and insurance clients, to invest millions in his fund to primarily purchase property, refurbish rental houses, and pay expenses for rental properties.. When soliciting investments, he falsely represented the profitability of his real-estate business, claiming it was profitable in order to promise 8 percent yearly returns.
In addition to pay returns to prior investors and finance his other businesses including tax preparation, printing press, maintenance, and storage-unit businesses, Marshall used hundreds of thousands of investors’ dollars to personal expenditures including travel purchases at American Airlines, Priceline, and United Airlines, and for retail and online purchases at merchants including Amazon, Lululemon, Target, grocery stores, restaurants, and yoga studio, according to the investigation.
Investigators also allege Marshall directed his staff to generate “transaction summaries” for investors, falsely representing their account balances and the interest they had purportedly earned. As a result of Marshall’s investment scheme, many investors lost their life savings, the state AG’s office stated.
The investigation revealed that by 2016, Marshall’s total liabilities exceeded his assets by more than
$40 million. However, he continued to solicit new investors and represent to prior investors that their investments were profitable for the next seven years until he could no longer repay investors and filed for bankruptcy.
Marshall made sworn statements in bankruptcy proceedings that as of March 2023, his total assets were less than $22 million, and he owed 988 investors more than $90 million including more than $50 million in principal they invested.