New York Insurance Agent Pleads Guilty to $50 Million Ponzi Scheme
From the desk of Jim Eccleston at ÍøÆسԹÏ
A New York insurance agent and tax preparer has pleaded guilty to operating a Ponzi scheme that allegedly defrauded nearly 1,000 investors out of more than $50 million over several decades, according to a report by InvestmentNews.
Miles Burton Marshall, who operated in Hamilton, New York, admitted to charges stemming from his management of the so-called "Eight Percent Fund," an investment program he promoted to clients as a vehicle primarily focused on real estate investments.
According to a statement from the New York Attorney General, Marshall instead used investor funds to pay returns to earlier investors, support his other business ventures, and cover personal expenses. Authorities also alleged that he spent investor money on shopping, vacations, dining, and other personal expenditures.
Authorities also alleged that Marshall directed employees to create false account statements and transaction summaries that misrepresented investor balances and purported earnings. According to prosecutors, investors relied on those statements, believed their investments continued to generate steady returns, and committed additional funds to the program.
According to InvestmentNews, investigators further determined that Marshall's liabilities exceeded his assets by more than $40 million as early as 2016, highlighting the significant financial shortfall underlying the operation.
As reported by InvestmentNews, Marshall pleaded guilty to grand larceny in the second degree, securities fraud under New York's Martin Act, and scheme to defraud in the first degree. He is scheduled to receive a prison sentence ranging from four to 12 years.
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Tags: eccleston, eccleston law, ponzi scheme, securities fraud, investment fraud, financial fraud, white collar crime
