New York – In a stunning revelation, Attorney General Letitia James has charged Miles Burton Marshall, a Madison County tax preparer and insurance agent, with orchestrating a $50 million Ponzi scheme that defrauded 988 investors. Marshall is accused of using the victims’ funds for his personal expenses and other business ventures.
The long-running scam, which spanned over three decades, involved Marshall soliciting investments into his ‘Eight Percent Fund,’ falsely claiming the money would be used for real estate. Instead, he reportedly used the funds to pay returns to earlier investors and cover his own costs. The 49-count indictment against Marshall includes charges 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. ‘My office will continue to ensure all those who cheat New Yorkers out of their life savings are held accountable.’
The investigation by the Office of the Attorney General’s Criminal Enforcement and Financial Crimes Bureau revealed Marshall used investor money for personal expenditures, including travel purchases at major airlines and retail stores. He also directed his staff to generate false account summaries to maintain the illusion of profitability.
Despite his liabilities exceeding assets by over $40 million in 2016, Marshall continued to solicit new investors. Many of his victims lost their life savings as a result of his fraudulent activities. The New York State Police and the Attorney General’s Office are commending the joint efforts that led to Marshall’s arrest.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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