Home / Crime and Justice / NY Businessman Admits $50M Ponzi Scheme
NY Businessman Admits $50M Ponzi Scheme
29 Apr
Summary
- Businessman pleaded guilty to fraud for a $50 million Ponzi scheme.
- He promised 8% interest but used new money to pay old investors.
- Investors lost savings, funds used for personal expenses.
A businessman from Hamilton, New York, has admitted guilt in a significant Ponzi scheme that defrauded over 100 people of more than $50 million. Miles Marshall, 74, who prepared taxes and sold insurance, guaranteed an 8% annual interest on investments in his '8% Fund.' Many in the local community, including neighbors and organizations, entrusted him with their money over several decades.
However, by 2011, Marshall was reportedly using new investors' money to pay off existing ones. A bankruptcy trustee later determined that he owed almost 1,000 individuals and organizations approximately $95 million in principal and interest. The state attorney general's office revealed that Marshall also squandered investor funds on personal expenses such as shopping, vacations, and dining out.
Marshall, who faced charges including grand larceny and securities fraud, is scheduled for sentencing on June 11 in Madison County Court. He could face four to 12 years in prison. The scale of the fraud has left many victims devastated, with one stating, "He has ruined so many of our lives."
