A 74-year-old businessman from upstate New York has admitted his role in a massive financial fraud that bilked hundreds of investors out of more than $50 million, state prosecutors announced Tuesday.
Miles “Burt” Marshall entered guilty pleas to second-degree grand larceny, securities fraud, and first-degree scheme to defraud. The charges could land him behind bars for four to 12 years when he appears for sentencing on June 11 in Madison County Court.
Operating from the small village of Hamilton near Colgate University, Marshall built his reputation as a tax preparer and insurance agent. But for years, he also ran what he called the “8% Fund,” promising investors that exact annual return on their money. His client base grew through personal recommendations, drawing investments from local residents, religious congregations, and community groups.
Court records reveal that by 2011, Marshall was operating a classic Ponzi scheme, using fresh investor funds to pay returns to earlier participants. A bankruptcy trustee’s investigation found that Marshall ultimately owed nearly 1,000 individuals and organizations approximately $95 million in principal and promised interest.
State Attorney General Letitia James revealed that Marshall diverted investor funds for personal luxuries including shopping sprees, vacation trips, and dining expenses.
“Miles Burton Marshall scammed his clients out of their life savings and used their hard-earned money to fuel a classic Ponzi scheme,” James stated in an official announcement.
The scheme unraveled in 2023 when Marshall sought Chapter 11 bankruptcy protection following a heart-related hospitalization. The medical emergency triggered a surge of withdrawal requests from investors, exposing the fraud. Marshall’s bankruptcy filing showed more than $90 million in debts against just $21.5 million in actual assets.
Victim Dennis Sullivan, who lost approximately $40,000, expressed frustration with the plea agreement. “I am shocked and a little upset that he didn’t get more time. I don’t feel justice was served,” Sullivan wrote in a text message following Tuesday’s court proceedings. “He has ruined so many of our lives.”
Marshall’s legal team has not yet responded to requests for comment regarding the guilty plea.
