Investments Gone Wrong: The Case of Miles “Bart” Marshall

For many years, if someone in upstate New York had some funds to invest and wanted to keep it close to home, Miles “Bart” Marshall was the go-to guy.

Located near Colgate University in the picturesque village of Hamilton, Marshall was known for preparing taxes and selling insurance. He had a reputation as an “8% fund,” which promised annual profits regardless of what the stock market did.

His clients recommended him to their friends and family—“Got some extra retirement funds? Let Bart take care of it!” He would invest that money into local rental properties, often yielding higher returns than a traditional bank.

Marshall was the embodiment of friendliness, often offering homemade maple syrup, pickles, and local honey. He had a quirky mantra: “Don’t worry about proper insurance.”

He’d talk up all the various groups that invested with him: churches, fire departments, and local doctors. “They’re smart folks,” he’d say, “If it wasn’t safe, do you think they would invest?”

But then everything fell apart.

According to legal filings, when Marshall went for bankruptcy protection two years ago, he owed around $95 million in principal and interest.

This summer, at the age of 73, he was charged with running a Ponzi scheme. If found guilty, he could be facing prison.

His lawyer chose not to make any comments on the case.

The total losses from his investors are comparable to those from the infamous Bernie Madoff scandal. The impact, however, is felt particularly hard in this small university town of about 6,400 people.

Many investors were professors, local workers, or retirees. Some lost hundreds of thousands of dollars—like Corrigan and her husband, who are out about $1.5 million.

Now, they’re left grappling with how someone who seemed so trustworthy and even remembered birthdays could betray their faith in him.

“Once this happened, my outlook changed,” Dennis Sullivan reflected. “It’s like, ‘Who can you really trust?’ It’s heartbreaking what he’s done to the community.”

A Trusted Local Figure

Marshall and his wife resided in a brick Victorian home just a stone’s throw from his office. In addition to insurance and tax prep, he managed over 100 rental properties and operated a self-storage business.

His family had a longstanding reputation in the insurance and real estate sectors, making the name Marshall respected around town.

Though he dropped out of university, he was a federally registered tax expert. To many locals, he appeared knowledgeable with an impressive office setup.

“His office had French doors, plush carpets, and a grand desk. He looked successful and trustworthy,” Corrigan recounted.

Marshall began collecting investments in the 1980s to buy and maintain rental properties. His investors received promise notes—documents indicating the amount invested, redeemable with a month’s notice, along with interest options.

Investors treated these transactions as investments, while Marshall referred to them as loans.

Over time, he assured participants of interest payments and managed withdrawals, attracting more people as they spread the word. Sullivan remembers how his parents had invested with Marshall, along with his fiancée’s family and even local clubs.

“It was all snowballing,” he said.

Many investors lived outside the area but had connections that drew them back.

The promise of an 8% return became increasingly notable in later years, especially as market interest rates dropped. During bankruptcy proceedings, Marshall claimed to believe that the value of his properties outweighed his debts.

“Looking back, it’s clearly wrong,” he admitted, “but that’s genuinely what I thought.”

Liabilities Exceed $90 Million

Fast forward to 2023, and the funds just stopped flowing.

In April, Marshall filed for Chapter 11 bankruptcy, citing over $90 million in liabilities against just $21.5 million in assets, mostly tied up in real estate.

He mentioned being hospitalized for a serious heart condition that required surgeries, submitting medical costs of around $600,000. This prompted some investors to request their money back.

Bankruptcy trustee Fred Stevens criticized Marshall’s actions, claiming he’d borrowed from those investing at above-market rates and suggested that by 2011, new investments were being used to pay older investors—defining characteristics of a Ponzi scheme.

Prosecutors allege he misled investors about his real estate business’s profitability and instructed staff to create misleading summaries, falsely inflating account balances.

Funds had been diverted to other ventures, with substantial amounts spent on personal expenditures—travel, dining, and even yoga classes.

Marshall’s clients now feel deeply betrayed.

“We thought we were letting it grow, but it just ended up padding his pockets,” Barbara Bartusnik shared about her experience.

The Aftermath of Financial Ruin

Marshall pleaded not guilty to grand theft and securities fraud charges in June, accused of stealing more than $50 million.

His properties are being sold as part of the bankruptcy proceedings, and investors are expected to recover about 5.4 cents on the dollar.

Bartusnik and her husband face substantial financial losses, worrying about how to pay medical bills. Sullivan’s mother moved in with him after losing her investment.

In Georgia, retired Carolyn Cole, who had hoped to supplement her Social Security income, feels the sting of loss too, having invested based on a family tie to the area.

“I get by, but there’s nothing left for anything special,” she lamented. “No trips, just making ends meet.”