74-Year-Old Tax Preparer Behind $50 Million “Eight Percent…

A 74-year-old New York tax preparer and insurance salesman who spent decades presenting himself as a trusted financial figure in his community is now facing prison after prosecutors said he operated a $50 million Ponzi scheme that quietly stretched across more than 30 years.

Miles Burton Marshall pleaded guilty to grand larceny, securities fraud under the Martin Act, and scheme to defraud charges tied to what authorities described as a long-running investment fraud known internally as the “Eight Percent Fund.” New York Attorney General Letitia James said the scheme affected 988 investors across Madison County and nearby areas.

According to prosecutors, Marshall convinced clients beginning in the early 1990s to invest in what he claimed were profitable real estate projects involving rental property purchases and refurbishments. Investors were promised annual returns of eight percent, a yield that appeared stable enough to attract retirees, local families, and long-term clients who already trusted Marshall with tax preparation and insurance services.

Authorities said the operation instead functioned as a classic Ponzi scheme where newer investor funds were used to pay earlier participants while Marshall allegedly diverted substantial amounts toward personal spending and unrelated business expenses.

Officials Say The Scheme Lasted More Than 30 Years

The case highlights how affinity-style fraud schemes can persist for decades when operators build relationships through legitimate professional services.

Unlike many modern investment scams driven by online marketing or crypto speculation, prosecutors said Marshall’s operation relied heavily on long-term personal trust inside a relatively concentrated local community.

The New York Attorney General’s Office said Marshall used investor money on shopping, restaurants, travel purchases, and yoga studio activities, alongside operational costs tied to other businesses. Investigators also alleged he directed employees to create fake account summaries showing fabricated balances and investment returns.

Attorney General James said:

“Miles Burton Marshall scammed his clients out of their life savings and used their hard-earned money to fuel a classic Ponzi scheme.”

Investigators said the scheme became increasingly unstable over time.

According to the Attorney General’s office, Marshall’s liabilities exceeded his assets by more than $40 million as early as 2016. Despite that imbalance, authorities said he continued soliciting investments while telling existing clients their investments remained profitable.

The operation eventually collapsed after Marshall filed for bankruptcy in 2023.

In bankruptcy proceedings, prosecutors said Marshall acknowledged owing more than $90 million to investors when accrued interest obligations were included. Authorities estimated his remaining assets at under $22 million.

Fraud Cases Continue To Expose Weaknesses In Retail Investor Protection

The Marshall case arrives during a period of heightened scrutiny around retail investor protection and financial fraud enforcement across the United States.

While recent attention often focused on crypto scams, social media-driven investment fraud, and AI-generated impersonation schemes, traditional affinity fraud operations continue to account for significant losses among older retail investors.

Fraud cases involving accountants, insurance agents, wealth advisers, and tax professionals remain especially difficult to detect because victims often place unusually high levels of trust in advisers who already manage sensitive financial information.

Regulators and law enforcement agencies increasingly warned that stable-return investment products marketed through personal relationships can avoid scrutiny for years, particularly when account statements appear consistent and investors continue receiving periodic payments.

Marshall’s “Eight Percent Fund” allegedly survived multiple market cycles, including the dot-com crash, the 2008 financial crisis, the pandemic-era volatility surge, and the sharp interest rate shifts of recent years.

That longevity may become one of the more striking aspects of the case.

Many modern fraud operations collapse rapidly after liquidity pressure emerges. Prosecutors allege Marshall maintained the structure for more than three decades before the liabilities became impossible to sustain.

Marshall Faces Up To 12 Years In Prison

Marshall is expected to receive a prison sentence ranging from four to 12 years under the plea agreement announced by the New York Attorney General’s Office. Prosecutors also said he must enter judgments in favor of victims totaling approximately $90 million, including principal and interest.

The investigation involved the New York State Attorney General’s Criminal Enforcement and Financial Crimes Bureau alongside the New York State Police, FINRA’s Criminal Prosecution Assistance Group, and the U.S. Securities and Exchange Commission.

The official statement from Attorney General Letitia James can be found here:

Attorney General James Announces Conviction of Madison County Tax Preparer for Running Decades-Long Ponzi Scheme