A Madison County man who admitted operating a decades-long Ponzi scheme that defrauded hundreds of investors has been sentenced to state prison.
New York Attorney General Letitia James announced that Miles Marshall, 74, of Hamilton, was sentenced to four to 12 years in prison for stealing more than $50 million from 988 investors in Madison County and surrounding areas.
Marshall pleaded guilty in April following an investigation by the Attorney General’s Office.
According to prosecutors, Marshall operated what he called the “Eight Percent Fund,” promising investors annual returns of eight percent and claiming their money would be used primarily for real estate investments. Instead, investigators found that he used funds from new investors to pay returns to earlier investors, cover expenses for other businesses he owned, and pay for personal purchases.
The Attorney General’s Office said the scheme began in the early 1990s and continued until March 2023.
Investigators found that Marshall solicited investments from clients of his tax preparation and insurance businesses, convincing them to invest tens of millions of dollars. To conceal the fraud, Marshall allegedly directed employees to create false account statements showing fictitious balances and earnings.
Authorities said the scheme eventually collapsed when Marshall could no longer repay investors. Bankruptcy records showed that as of March 2023, Marshall had less than $22 million in assets while owing investors more than $90 million, including principal and promised interest.
Attorney General James said many victims lost their life savings, retirement funds, and money intended to support family members or pay for education expenses.
The case was investigated by the Attorney General’s Criminal Enforcement and Financial Crimes Bureau with assistance from the New York State Police.
