The New York State Attorney General's Office has announced the arrest of a local tax preparer accused of stealing $50 million through a decades-long Ponzi scheme.

The investigation into Miles Burton Marshall started in 2023.

At that time, the AG urged potential victims to come forward.

The investigation uncovered 988 investors in his purported Eight Percent Fund,” claiming that their funds would be primarily used for real property investments," according to New York Attorney General Letitia James.

Marshall allegedly misappropriated their funds to cover his personal expenses as well as those of his other businesses, according to James.

Marshall, who operated an office in Hamilton, faces indictment on 49 counts, including grand larceny, securities fraud and conspiracy to defraud.

“For over three decades, Miles Burton Marshall fooled his community into believing he was a trusted businessman when in reality, he was scamming his clients and neighbors out of their life savings,” James said. “Fraud of any kind is not acceptable in New York. My office will continue to ensure all those who cheat New Yorkers out of their life savings are held accountable.”

"A long-term investigation led by the Office of the Attorney General’s (OAG’s) Criminal Enforcement and Financial Crimes Bureau (CEFC) 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.” Marshall allegedly told investors that their funds would be primarily used to purchase property, refurbish rental houses, and pay expenses for rental properties. When soliciting investments, he falsely represented the profitability of his real estate business, claiming it was so profitable that he could promise investors eight percent yearly returns.

"After soliciting investments, Marshall allegedly used investors’ money to pay investment returns to prior investors, and finance operating expenses for his other businesses, including tax preparation, printing press, maintenance, and storage unit businesses. In addition to business expenses, OAG alleges Marshall used hundreds of thousands of investors’ dollars for 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 allegedly directed his staff to generate '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.

"CEFC’s investigation revealed that by 2016, Marshall’s total liabilities exceeded his assets by over $40 million. Still, he continued to solicit new investors and represent to prior investors that their investments were profitable for the next seven years until he could no longer repay investors, and filed for bankruptcy. Marshall made sworn statements in the bankruptcy proceedings that as of March 2023, his total assets were less than $22 million, and he owed 988 victim investors over $90 million, including over $50 million in principal they invested," according to the AG's office.

Marshall was arraigned on Monday and released on his own recognizance. He was required to surrender his passport and not leave New York State.

If convicted, Marshall faces a maximum sentence of up to 10 to 20 years in prison, according to the AG's office. (WKTV, but headline rejigged)