Miles Burton Marshall, a longtime tax preparer and insurance agent in Madison County, admitted in court on Tuesday that he was behind a Ponzi scheme prosecutors say stretched for decades, siphoned more than $50 million and hit 988 investors. Many of those victims were his own tax and insurance clients, according to court filings and state investigators, who say some were wiped out of their life savings. Marshall now faces a looming state prison term and a mountain of civil judgments that prosecutors say are aimed at clawing money back for those he burned.
We've secured the conviction of Miles Burton Marshall, a Madison County tax preparer, for scamming over 950 people out of their life savings. I won't tolerate anyone who takes advantage of New Yorkers and breaks the law to line their own pockets. https://x.com/i/status/2049226229744537691
— New York State Attorney General (@NewYorkStateAG) April 28, 2026
How Investigators Say the Scheme Worked
According to a press release from the New York State Attorney General's Office, Marshall pitched investors on something he called the "Eight Percent Fund." He sold it as a steady, reliable real-estate investment play. Prosecutors say that behind the soothing sales pitch, Marshall was mostly using new investor money to pay earlier investors, the classic Ponzi setup.
Investigators say Marshall also dipped into those funds for himself, spending investor cash on personal travel, retail purchases and business expenses. To keep everyone believing the money was safe and growing, staff in his office allegedly cranked out fake "Transaction Summaries" that hid the growing hole in the fund. The Attorney General's Office says the scheme ran from the early 1990s through March 2023 and left many investors with nothing when it finally collapsed.
Indictment and Local Ties
A Madison County grand jury initially returned a 49-count indictment that laid out the case in detail, according to court filings. The indictment includes multiple counts of grand larceny and securities-related charges tied to years of investor losses.
Reporting by InvestmentNews noted that Marshall operated out of Hamilton and described him as "the proverbial big fish in a small pond" among his upstate client base, a local fixture who appeared successful until the numbers stopped working.
Plea, Sentence and Restitution
Marshall pleaded guilty to Grand Larceny in the Second Degree, Securities Fraud under the Martin Act and Scheme to Defraud in the First Degree. He is scheduled to be sentenced on June 11, when he faces a state prison term in the range of four to 12 years.
As part of the plea, Marshall agreed to the entry of civil judgments in favor of victims totaling roughly $90 million, according to the Attorney General's Office. Prosecutors credited the work of forensic accountants and financial regulators, including FINRA and the SEC, with helping them untangle what was really going on with investor money.
Impact on Local Investors and What’s Next
"I won't tolerate anyone who takes advantage of New Yorkers and breaks the law to line their own pockets," the attorney general wrote on X after the conviction, underscoring how deeply the case cut into a small community built on trust. The post echoed earlier reporting that many of Marshall's victims were ordinary local customers, a point InvestmentNews highlighted when the case first surfaced.
Civil lawsuits, potential bankruptcy proceedings and long-term judgment enforcement efforts are expected to stretch out over months, if not years. Those processes will ultimately determine how much of the lost money, if any, can realistically be recovered for investors.
What to Watch Next
Marshall is due back in court for sentencing on June 11 before Judge Rhonda Youngs, when the agreed-upon prison range and the civil judgments will be formally entered. Authorities say the investigation relied on years of forensic accounting and coordination with state and federal partners. Prosecutors say their focus now is on holding Marshall accountable and guiding victims through the legal options that remain.
Officials have urged anyone who believes they were affected by the scheme to seek out state consumer and investor protection resources, which outline how to report losses, participate in restitution efforts and understand their rights in the aftermath of financial fraud.
