Miles Burton Marshall, 30-Year Ponzi Scheme, New York, 2023

NEW YORK – Miles Burton Marshall, a Madison County tax preparer and insurance agent, is facing a 49-count indictment after allegedly running a Ponzi scheme for over three decades, pilfering more than $50 million from 988 investors across Madison County and surrounding areas. New York Attorney General Letitia James announced Marshall’s arrest today, detailing a scheme that preyed on trusting community members, many of whom lost their entire life savings.

The scheme, dubbed the “Eight Percent Fund,” lured investors with promises of high returns generated through real property investments. However, according to the Attorney General’s office, Marshall wasn’t investing the money at all. Instead, he used incoming funds to pay off earlier investors – the classic hallmark of a Ponzi scheme – and to fund his lavish lifestyle and a network of other businesses. The indictment charges Marshall with multiple counts of Grand Larceny, Securities Fraud, and Scheme to Defraud.

“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,” Attorney General James stated. “Fraud of any kind is not acceptable in New York. My office will continue to ensure all those who cheat New Yorkers out of their life savings are held accountable.”

The investigation, spearheaded by the Office of the Attorney General’s (OAG’s) Criminal Enforcement and Financial Crimes Bureau (CEFC), revealed that Marshall began soliciting investments as early as the 1990s. He targeted his existing tax and insurance clients, falsely claiming his real estate business was exceptionally profitable and capable of delivering consistent eight percent annual returns. By 2016, however, Marshall’s liabilities already exceeded his assets by over $40 million, yet he continued to solicit new investors and reassure existing ones.

The OAG alleges Marshall wasn’t shy about spending investor funds on personal luxuries. Investigators uncovered purchases at American Airlines, Priceline, United Airlines, Amazon, Lululemon, Target, and even yoga studios. He also used investor money to cover operating expenses for his other businesses, including a tax preparation service, a printing press, and storage units. To maintain the facade, Marshall allegedly directed staff to create falsified “Transaction Summaries” showing inflated account balances and fabricated interest earned, keeping investors hooked and reinvesting.

“This arrest once again shows that those who scheme to swindle New Yorkers out of their hard-earned money for their own personal gain will be held accountable for their actions,” said New York State Police Superintendent Steven G. James. “Mr. Marshall allegedly misled his clients on the usage of their money, spending the cash on his own expenses and leaving his victims with a false sense of financial security. I commend our State Police members and the Attorney General’s Office for their outstanding work on this case.” The investigation remains ongoing, and authorities are working to recover assets to compensate defrauded investors.