UTICA, N.Y. (WSYR-TV) — “I feel horrible,” Miles Burton Marshall said when asked about destroying “generational wealth” by an attorney representing many of the people who lent money to him.
“I’m suicidal.”
Over the phone, Marshall was put under oath to answer questions from both clients and attorneys representing clients.
Over the three and a half hours, he heard from some of the 900 people to whom he owes money. With $90 million owed and only $20 million in assets, up to $70 million has been lost.
In March, the New York State Attorney General announced an investigation into Marshall, resulting in 30 lawsuits demanding back payments.
In April, Marshall filed for bankruptcy. His attorney has maintained it wasn’t a Ponzi scheme.
“Where did that 70 million dollars go?,” asked one of Marshall’s clients over the phone Monday.
He said, “There’s not hidden money or offshore money or anything. It went into my checkbook and paid all the expenses out of my checkbook.”
Despite his lawyer objecting to the form of the question, Marshall said the money was used to improve his real estate.
Marshall described how multiple businesses and his personal credit care were all paid by the same single bank account, so when a hospitalization paused his tax service earlier this year, the lack of income collapsed everything.
Marshall was unable to honor the more than 900 promissory notes and interest when demands for pack-back began rushing it. Over many decades, Marshall had borrowed people’s money with the promise of interest paid back.
“Did you present it as an investment opportunity for them?” asked Assistant U.S. Trustee Erin Champion.
“I did not,” answered Marshall. “I presented it as lending me money in return for eight percent interest.”
Marshall admitted he expected the value of the real estate he purchased or improved with their money would outpace the interest he promised; It didn’t.
By the end of the summer, Marshall’s attorney and financial advisors have to develop a plan to pay back some of what was lost. It’s still not clear if all the missing $70 million was used on real estate enhancements or how much will be made back when some of the real estate is sold.
One of his advisors said more money might be made back if the real estate is sold over time, as opposed to a bulk sale which could drive down the market values across Hamilton.
A caller asked, “You have abused and taken advantage (of us.) Why haven’t you publicly apologized to our community?”
Marshall’s attorney objected to the question and advise his client not to answer.
The caller tried again. “You have single-handedly ripped this town a part to the point –”
Marshall’s attorney cut off the comment.