A large landlord in upstate New York has many questioning his business practices — thousands, in fact.
M. Burton Marshall of Madison County owes $92.7 million to creditor Syracuse.com ReportThe revelation came from the bankruptcy filing, which also detailed that $90.5 million of that was unsecured debt owed to nearly 1,000 people who lent Marshall money in exchange for an 8% annual return.
Investors told the publication that Marshall claimed he would use the borrowed money to invest in the community, including buying rental properties. In exchange, Marshall offered promissory notes, claiming that investors would get their principal back with 30 days’ notice. The lender has not received any security on the property.
In addition to being a landlord, Marshall was a tax preparer and an insurance salesman. The 71-year-old filed for Chapter 11 bankruptcy last week.
Marshall’s net worth is $21.9 million. Most of the value comes from real estate; Marshall owns rental properties in the Hamilton area, near Colgate University.
Lots of so-called debts from many creditors. Some owe only a few hundred dollars, filings show. However, one owes more than $2 million. Some creditors live on the other side of the country.
Last month, New York Attorney General Lettia James opened an investigation into Marshall’s activities and some alleged irregularities in his dealings. The investigation was launched after multiple complaints were received, beginning with inquiries to the local police department in early March.
about Marshall’s Tax Practice Website He noted “persistent health issues” in February that will keep him out for the busy tax season. Before that, at least one lender said Marshall’s payments to them were up to date.
The lawsuits are said to mount as the amount owed mounts. Dozens of people have filed lawsuits against Marshall in recent weeks.
— holden warner