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A Madison County businessman, Burt Marshall, has been charged with orchestrating a Ponzi scheme that allegedly defrauded over 988 investors of more than $50 million. New York Attorney General Letitia James announced the arrest, revealing that Marshall ran the scheme for over three decades through his business, "The Eight Percent Fund." Marshall allegedly promised investors their money would be used for real estate investments, but instead, he used the funds to pay off earlier investors and cover personal expenses, including travel and shopping.
The 49-count indictment charges Marshall with grand larceny, securities fraud, and a scheme to defraud. If convicted, he could face up to 20 years in prison. According to the Attorney General's Office, Marshall misled clients with falsified transaction summaries, giving them a false sense of financial security. By 2016, his liabilities exceeded his assets by over $40 million, but he continued to solicit new investments until he filed for bankruptcy in 2023.
Attorney General James emphasized the commitment to holding those accountable who defraud New Yorkers. Marshall was released on his own recognizance but must remain in New York State. The case is being prosecuted by the Criminal Enforcement and Financial Crimes Bureau, with assistance from the U.S. Securities and Exchange Commission and other agencies. The charges are accusations, and Marshall is presumed innocent until proven guilty in court.