NY insurance agent and Ponzi schemer faces 4-12 years in prison

A central New York tax preparer and insurance agent who admitted to operating a decades-long Ponzi scheme that defrauded nearly 1,000 investors out of more than $50 million pleaded guilty Tuesday and faces years in prison.

Miles Burton Marshall, of Madison County, pleaded guilty to second-degree grand larceny, securities fraud under the Martin Act, and first-degree scheme to defraud. He is scheduled to be sentenced on June 11 to four to 12 years in state prison.

Prosecutors said Marshall solicited clients beginning in the early 1990s to invest in his so-called “Eight Percent Fund,” promising annual returns of 8% tied to real estate investments. Instead, authorities said, he used new investor funds to pay earlier investors, cover business expenses and finance personal spending.

Investigators said Marshall diverted hundreds of thousands of dollars for travel, retail purchases and dining, while directing staff to generate false account statements showing steady returns. Those misrepresentations led investors to continue contributing funds, believing their investments were profitable.

According to the attorney general’s office, the scheme ultimately drew in 988 investors from Madison County and surrounding areas. Many lost their life savings.

By 2016, Marshall’s liabilities exceeded his assets by more than $40 million, but he continued to solicit new investments, prosecutors said. He later filed for bankruptcy, reporting less than $22 million in assets against more than $90 million owed to investors, including principal and accrued interest.

As part of his guilty plea, Marshall agreed to enter judgments totaling about $90 million in favor of victims.

“Miles Burton Marshall scammed his clients out of their life savings and used their hard-earned money to fuel a classic Ponzi scheme,” New York Attorney General Letitia James said in a statement, adding that authorities will continue pursuing financial crimes against investors.

New York Police Superintendent Steven G. James said the conviction followed a long-term investigation involving state police and the attorney general’s Criminal Enforcement and Financial Crimes Bureau.

“Today’s conviction is verification that we will not tolerate the actions of those willing to misguide and victimize unsuspecting individuals for money,” he said.

Marshall entered his plea before Judge Rhonda Youngs in Madison County Court.