74-Year-Old Upstate New York Businessman Pleads Guilty in Ponzi Scheme

A well-established businessman from upstate New York pleaded guilty April 28 to running a large Ponzi scheme that took more than $50 million from investors, state officials reported. Miles “Burt” Marshall, 74, is facing a prison sentence of four to 12 years after admitting to grand larceny, security fraud, and a scheme to defraud.

Authorities said Marshall collected money for decades from nearly 1000 people and groups. He promised steady returns through what he called an 8% Fund. Many investors were locals, church groups, or belonged to various community groups. Referrals often spread by word of mouth, helping him gain trust over the years.

A bankruptcy review was later conducted and found that by 2011, Marshall was using money from new investors to pay earlier investors. This was a main sign of a Ponzi scheme. By the time the fraud collapsed, he owed about $95 million in total, including interest.

State Attorney General Letitia James said Marshall used investor money for personal expenses. These included shopping, dining and vacations. In an official press release, James said, “Miles Burton Marshall scammed his clients out of their life savings and used their hard-earned money to fuel a classic Ponzi scheme.”

Marshall had built a reputation in the small village where he had worked as a tax preparer and insurance seller. For years, he paid returns as promised and allowed withdrawals. This helped him maintain trust among investors.

However, the scheme began to show its flaws in 2023. It fell apart after Marshall filed for Chapter 11 bankruptcy after being hospitalised for a heart condition. Around the same time, many investors started asking for their money back. Court filings showed he had more than $90 million in liabilities and only $21.5 million in assets.

Some victims said they were left devastated by the losses. Dennis Sullivan, who is owed about $40,000, showed her anger after the guilty plea. “I am shocked and a little upset that he didn’t get more time. I don’t feel justice was served,” Dennis Sullivan said. “He has ruined so many of our lives.”

Marshall is now scheduled to be sentenced on June 11 in Madison County Court. His lawyer did not respond to a request for comment. Hence, an official statement from Marshall is yet to be released.