Upstate New York Man Pleads Guilty To Stealing More Than $50m In Ponzi Scheme

A businessman accused of stealing much that $50 cardinal from hundreds of group successful upstate New York arsenic portion of a monolithic Ponzi scheme pleaded blameworthy Tuesday to charges stemming from nan fraud, according to nan authorities lawyer general.

Miles “Burt” Marshall faces 4 to 12 years successful situation aft pleading blameworthy to second-degree expansive larceny, securities fraud and first-degree strategy to defraud, according to lawyer general's office, which secured an indictment against him past summer.

Marshall, 74, prepared taxes and sold security successful nan quaint colony of Hamilton, adjacent Colgate University. For decades, he besides took money for what was sometimes called nan “8% Fund,” which guaranteed that overmuch successful yearly interest. He took money from neighbors, churches and area organizations, pinch referrals often coming done word-of-mouth.

A bankruptcy trustee later wished that Marshall had been utilizing caller finance money to salary disconnected erstwhile investors by 2011. He yet owed almost 1,000 group and organizations astir $95 cardinal successful main and interest, according to nan trustee.

Attorney General Letitia James said Marshall besides spent his investors’ costs connected shopping, vacations and restaurants.

“Miles Burton Marshall scammed his clients retired of their life savings and utilized their hard-earned money to substance a classical Ponzi scheme,” James said successful a prepared release.

An email seeking remark was sent to Marshall’s attorney.

Marshall is scheduled to beryllium sentenced successful Madison County Court connected June 11.

“I americium shocked and a small upset that he didn’t get much time. I don’t consciousness justness was served,” Dennis Sullivan, who was owed astir $40,000, wrote successful a matter aft nan plea. “He has ruined truthful galore of our lives.”

Marshall had made bully connected his promises to salary liking and process withdrawals for galore years. But he revenge for Chapter 11 bankruptcy protection successful 2023 aft a hospitalization for a bosom information and a consequent tally connected statement holders asking for their money back. He declared much than $90 cardinal successful liabilities and $21.5 cardinal successful assets.