HAMILTON, N.Y. (WSYR-TV) — The attorney for Miles Burton Marshall, owner of a Hamilton-based tax preparation, insurance and investment firm under investigation by the State Attorney General, says his client is “not running a Ponzi scheme.”
He continues: “…as is evident by the fact that he has a number of successful businesses, including over 100 investment properties in and around the Hamilton area.”
Marshall faces two additional pending lawsuits filed Thursday, in addition to the six filed in the last week, first reported by NewsChannel 9 on Wednesday, March 29.
Money owed by Marshall for just the eight lawsuits total $1.4 million.
An investigation into “concerns from New York consumers” was announced Tuesday, March 28, by the State Attorney General, a rare step for her office to announce a financial-related investigation before its resolution.
The uncertainty for Marshall’s clients began in early March when his attorney informed them payments would be paused because he was hospitalized and no longer had a source of income.
Clients who spoke with NewsChannel 9 or told their story in legal paperwork have a common pattern of investment large amounts of money with Marshall with a promised 8% interest return.
When the payouts stopped, clients were automatically cut checks for 0.5% of what was owed.
Some clients are concerned they are victims of a Ponzi Scheme, which the US government defines as “an investment fraud that pays existing investors with funds collected from new investors.”
Attorney Jeffrey Dove from Barclay Damon tells NewsChannel 9: “We are working with Mr. Marshall to develop a plan to provide liquidity from his assets that can then be used to respond to the claims of Mr. Marshall’s creditors.”
“We will be happy to provide updates as that plan takes shape,” the attorney adds.
The Attorney General’s Office urges people to report their missing money. People are asked to email MBMarshall.email@example.com.