Miles “Burt” Marshall, a 74-year-old businessman from Hamilton, New York, pleaded guilty to charges related to a Ponzi scheme that defrauded hundreds of investors. Marshall faces 4 to 12 years in prison after admitting to second-degree grand larceny, securities fraud, and first-degree scheme to defraud. The scheme, which operated for decades, promised investors an 8% annual return through what was called the “8% Fund.”
Core Facts & Immediate Action
Marshall, who prepared taxes and sold insurance in Hamilton, near Colgate University, took money from neighbors, churches, and local organizations. A bankruptcy trustee later determined he had been using new investment money to pay off earlier investors by 2011. By the time the scheme collapsed, Marshall owed almost 1,000 people and organizations approximately $95 million in principal and interest. Attorney General Letitia James stated that Marshall spent investors’ funds on shopping, vacations, and restaurants. Marshall is scheduled to be sentenced in Madison County Court on June 11.
Deeper Dive & Context
Investor Reactions
Dennis Sullivan, who was owed about $40,000, expressed dissatisfaction with the plea deal, stating, “I am shocked and a little upset that he didn’t get more time. I don’t feel justice was served.” Marshall had paid interest and processed withdrawals for many years before filing for Chapter 11 bankruptcy protection in 2023 after a hospitalization and a subsequent run on note holders. The bankruptcy filing revealed the full extent of the fraud.
Legal & Financial Details
The state attorney general’s office secured an indictment against Marshall last summer. The plea deal avoids a trial, but the sentencing will determine the final prison term. The case highlights the long-term trust Marshall built in his community before the scheme unraveled.