An upstate New York tax preparer and insurance agent was arrested for allegedly operating a massive Ponzi scheme for over three decades that stole more than $50 million from 988 real estate investors.
According to the charges brought against him, Miles Burton Marshall solicited unsuspecting clients to invest millions of dollars into his “Eight Percent Fund” from the early 1990s through March 2023. Marshall claimed his investors’ funds would be used to purchase property, refurbish rental houses, and pay expenses for rental properties. When soliciting investments, Marshall falsely claimed his business was so profitable that investors would enjoy 8% yearly returns.
In reality, Marshall allegedly used the funds to pay investment returns to prior investors, as well as to pay for his personal expenditures and the expenses of his other businesses. Marshall ultimately owed 988 victim investors over $90 million, including over $50 million in principal that they invested.
Marshall was hit with a 49-count indictment that charged him with 21 counts of Grand Larceny in the Second Degree (a Class C felony), three counts of Grand Larceny in the Third Degree (a Class D felony), 24 counts of Securities Fraud under the Martin Act (a class E felony), and one count of Scheme to Defraud in the First Degree (a class E felony). If convicted, Marshall faces a maximum sentence of up to 10 to 20 years in prison. He was released on his own recognizance and required to surrender his passport and not leave New York State.
“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.”
