Financial Fraud Leads To Jail

New York Attorney General Letitia James last week announced the conviction of Miles Burton Marshall of Hamilton, a Madison County tax preparer and insurance agent.

Marshall was convicted for operating a massive Ponzi scheme that stole more than $50 million from 988 investors in Madison County and nearby counties.

Marshall convinced unsuspecting clients to invest millions of dollars into his “Eight Percent Fund,” claiming their funds would be primarily used for real estate investments. Instead, Marshall used these funds to pay investment returns to prior investors and to cover the expenses of his other businesses and his personal expenses.

Marshall also spent his investors’ funds on shopping, vacations, and trips to restaurants.

Last week Marshall pleaded guilty to Grand Larceny in the Second Degree, Securities Fraud under the Martin Act, and Scheme to Defraud in the First Degree, and will be sentenced to four to 12 years in prison.

As part of his guilty plea, Marshall must enter judgments in favor of the victims, including principal and interest totaling approximately $90 million.

“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.

“Today’s conviction is verification that we will not tolerate the actions of those willing to misguide and victimize unsuspecting individuals for money,” said New York State Police Superintendent Steven G. James. “Mr. Marshall thought only to enrich himself at the expense of others, with no regard to their well-being.”

Beginning in the early 1990s and continuing through March 2023, Marshall solicited potential investors, including his tax and insurance clients, to invest tens of millions of dollars into his “Eight Percent Fund.”

Marshall told investors their funds would be primarily ...