Attorney General James Announces Sentencing of Madison County Tax Preparer Who Stole More Than $50 Million in Decades-Long Ponzi Scheme

June 11, 2026

NEW YORK - New York Attorney General Letitia James today announced that Miles Burton Marshall, 74, of Hamilton, Madison County was sentenced to four to 12 years in prison for operating a massive Ponzi scheme that fraudulently stole more than $50 million from 988 investors in Madison County and other nearby counties. An investigation by the Office of the Attorney General (OAG) found that Marshall convinced unsuspecting clients to invest millions of dollars into his so-called "Eight Percent Fund," claiming that their funds would be primarily used for real estate investments. Instead, Marshall used these funds to pay investment returns to prior investors, cover the expenses of his other businesses, and fund his shopping trips, vacations, and restaurant visits. Marshall's scheme lasted three decades, and in April, he pleaded guilty as a result of OAG's investigation.

"For more than thirty years, Miles Burton Marshall scammed his clients out of their life savings in a classic Ponzi scheme," said Attorney General James. "Let this be a warning: if you attempt to scam New Yorkers out of their hard-earned money, my office will bring you to justice. I thank our law enforcement partners for their assistance in securing this conviction and helping those who were cheated get their money back."

"Mr. Marshall perpetuated dishonest business practices and misled his clients to believe their finances were in good hands," said New York State Police Superintendent Steven G. James. "The victims in this case were cheated and robbed of their rightly earned income that they relied upon to make a living. Our members will continue to work with the Attorney General's Office to protect the innocent that are taken advantage of for another's benefit."

Today's sentencing is the result of a long-term investigation led by OAG's Criminal Enforcement and Financial Crimes Bureau (CEFC). The investigation revealed that beginning in the early 1990s and continuing through March 2023, Marshall solicited potential investors, including his tax and insurance clients, to invest tens of millions of dollars into his so-called "Eight Percent Fund," in which he falsely promised eight percent yearly returns on investments. Marshall told investors that their funds would be primarily used to purchase property, refurbish rental houses, and pay expenses for rental properties. In reality, Marshall used investors' money to pay investment returns to prior investors and finance operating expenses for his other businesses. Marshall also spent hundreds of thousands of dollars from his investors on personal expenditures, including travel purchases at American Airlines, Priceline, and United Airlines, at retail and online stores such as Amazon, Lululemon, and Target, and at grocery stores, restaurants, and yoga studios.

To further his scheme, Marshall directed his staff to generate fake "Transaction Summaries" for investors, falsely representing their account balances and the interest they purportedly earned. Marshall's investors relied on these false statements, believing they were earning a steady income, and continued to invest. As a result of Marshall's investment scheme, many investors lost their life savings.

The investigation revealed that by 2016, Marshall's total liabilities exceeded his assets by over $40 million. Still, he continued to solicit new investors and tell prior investors that their investments were profitable. Eventually, Marshall could no longer repay investors and filed for bankruptcy. In bankruptcy proceedings, Marshall made sworn statements that as of March 2023, his total assets were less than $22 million, and he owed 988 victim investors over $90 million, which included the principal they invested as well as accrued interest.

Marshall's scheme took a devastating toll on his hundreds of people, including many who lost their life savings. Many investors were left unable to provide care for elderly and disabled family members, or to assist with college expenses for their children or grandchildren. Other victims lost their entire retirement savings and were forced to return to the workforce just to pay monthly expenses.

On April 28, 2026, before Judge Rhonda Youngs in Madison County Court, Marshall pleaded guilty to Grand Larceny in the Second Degree, Securities Fraud under the Martin Act, and Scheme to Defraud in the First Degree. Today, Judge Youngs sentenced Marshall to four to 12 years in state prison; Marshall also entered judgments in favor of his 988 victims, including principal and interest, totaling approximately $85 million.

Attorney General James thanks the Financial Industry Regulatory Authority (FINRA) and its Criminal Prosecution Assistance Group, the U.S. Securities and Exchange Commission, and the New York State Police for their invaluable assistance in this investigation. Attorney General James also thanks the Office of the United States Trustees, the Village of Hamilton Police Department, the Madison County Real Property Tax Services Department, and the Madison County District Attorney's Office for their assistance.

This case was prosecuted by CEFC Assistant Attorneys General Andrew Tarkowski and Eleanor Biggers, with assistance from Assistant Attorney General Sean Bunny. Analytical work was provided by CEFC Senior Legal Analyst Joseph Conniff, under the supervision of Chief Analyst Jayleen Garcia. Forensic accounting was conducted by Principal Auditor Investigators Brenna Magruder and Danielle Dudley, under the supervision of Chief Auditor Kristen Fabbri and Deputy Chief Auditor Sandy Bizzarro of the Forensic Audit Section. CEFC is led by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph G. D'Arrigo.

The criminal investigation was conducted by Senior Detective Joel Cordone, under the supervision of Deputy Chief Juanita Bright, Assistant Chief Samuel Scotellaro, and Detective Supervisor Peter Fitzgerald of the Major Investigations Unit. The Investigations Bureau is led by Chief Investigator Oliver Pu-Folkes. Both CEFC and the Investigations Bureau are part of the Division for Criminal Justice, which is led by Chief Deputy Attorney General Jose Maldonado and overseen by First Deputy Attorney General Jennifer Levy.