Businessman Pleads Guilty to Ponzi Scheme in New York
A businessman has admitted guilt in a Ponzi scheme that defrauded over $50 million from numerous individuals in upstate New York. This was confirmed by the state attorney general’s office.
Miles “Bart” Marshall, aged 74, faces a potential prison sentence ranging from four to 12 years after pleading guilty to charges including second-degree grand larceny and securities fraud. The Attorney General’s office had obtained his indictment the previous summer.
Marshall operated in the small village of Hamilton, not far from Colgate University, where he prepared taxes and sold insurance. For many years, he ran an “8% fund,” which promised a fixed annual return. He attracted investments from local residents, churches, and community organizations—often gaining new clients through word of mouth.
A bankruptcy trustee later revealed that by 2011, Marshall was using new investments to pay back earlier investors. Ultimately, he was found to owe nearly $95 million in principal and interest to around 1,000 parties.
According to Attorney General Letitia James, Marshall misused investors’ funds for personal interests, including shopping sprees and vacations.
James stated, “Miles Barton Marshall defrauded his clients of their life savings and exploited their hard-earned money to support a classic Ponzi scheme,” in a formal announcement.
An email was sent to Marshall’s attorney for comments but no response has been reported.
Marshall’s sentencing is set for June 11 in Madison County Court. In a message following the plea, one victim, Dennis Sullivan, who lost about $40,000, expressed his disappointment. He said he was “somewhat shocked and a little upset” that Marshall wasn’t given a harsher sentence, asserting, “He ruined so many of our lives.”
While Marshall had consistently paid interest and processed withdrawals in the past, he filed for Chapter 11 bankruptcy in 2023 after facing health issues. He subsequently sought refunds from note holders. His debts exceed $90 million, with assets listed at over $21.5 million.
