Syracuse, NY – Lawsuit Against Berkshire Bank in Ponzi Scheme
A significant lawsuit has been initiated against Berkshire Bank, which is allegedly tied to a nearly $100 million Ponzi scheme orchestrated by Miles Burton Marshall of upstate New York. Many individuals, reportedly hundreds, have lost their savings due to this scheme and are now part of the lawsuit.
This legal action comes from investors, including Kras and Fred Stevens, who are managing a collective claim from 369 investors filed in the U.S. District Court for the Upstate District of New York.
Darlene Stetson, a victim of the fraud, spoke about her experience at a recent press conference. “We began with small investments of $5,000 and $3,000,” she recalled. “In August 2018, we thought we were earning about 8% annual interest, which was detailed in a memo every month. Later, Marshall introduced an addendum that modified our investments’ face value.”
She continued, “Over time, we made additional principal investments, increasing our total balance. In the end, we lost everything, around $70,000, along with the interest we believed we had accrued.” Stetson expressed that the financial fallout has been one of the harshest shocks for her and her husband.
“The money taken from us has devastated many families in our community. It’s infuriating to learn how Berkshire Bank allowed this fraudulent behavior to occur and failed in its responsibility,” she emphasized. Stetson insisted that the bank should face consequences for its actions.
The lawyer representing the victims noted there could be around 1,000 individuals affected by the Ponzi scheme. Daniel Centner from Peiffer Wolf Carr Kane Conway and Wise, LLP mentioned that the lawsuit aims to hold the bank accountable.
Centner pointed out that the bank reportedly ignored several fraud warnings over six years and overlooked specific alerts from NBT Bank regarding Marshall’s activities. “Our complaints reference an email from NBT, noting Marshall’s suspicious actions,” he explained.
He stressed the obviousness of the scheme, stating, “Marshall’s operation was so apparent that his previous bank reached out to Berkshire Bank, urging them to intervene.”
“Without a doubt, the relevant people at Berkshire Bank were informed of the risks,” Centner added. “Yet, the bank not only disregarded this warning but also facilitated Marshall’s activities, even providing him with a personal check scanner that let him deposit up to $300,000 from victims daily.”
Sentner stated that these victims are hardworking individuals who now face serious challenges in their lives.
Robert Elgie, a partner at Fox Rothschild, noted, “A scheme of this magnitude can’t be carried out by one person alone. Berkshire Bank failed to acknowledge the blatant criminal activity and instead supported it.”
According to legal representatives, Berkshire Bank was aware of Marshall’s wrongdoing, and NBT Bank had severed ties with him based on his patterns of behavior. In 2021, that same bank explicitly warned Berkshire Bank about its suspicions of Marshall running a Ponzi scheme, highlighting how the bank should have closed his accounts and alerted law enforcement as mandated.
