A former Grafton city official was arrested Friday on federal fraud charges after allegedly soliciting hundreds of thousands of dollars for his marijuana company and using the money to pay off debts.
Bruce W. Spinney III, 49, was indicted Thursday on three counts of wire fraud and one count of unlawful financial dealing, according to the Office of Acting U.S. Attorney Joshua S. Levy.
Spinney, a former Grafton City Council president, is accused of soliciting funds from investors after he left office in August 2019. According to the indictment, Spinney told investors he would use the funds to license and build a new marijuana dispensary called Noble Manna Inc., with storefronts in Grafton and Mendon.
But prosecutors say Spinney quickly used the money to pay off debts for two other companies – a linen business and a rental business – and allegedly used the money to pay debt collectors, outstanding business loans, cash withdrawals and personal expenses.
The indictment also accuses Spinney of engaging in illegal financial transactions in March 2020. Prosecutors say Spinney used the proceeds of wire fraud to transfer $27,000 to pay debts related to his rental business.
Spinney appeared in Worcester federal court on Friday and was released on conditions, according to Levy's office. If convicted, Spinney faces up to 20 years in prison, three years probation and a $250,000 fine for each count of wire fraud. The unlawful financial transaction count carries a maximum penalty of 10 years in prison, two years probation and a $250,000 fine.
by Worcester Telegram & GazetteSpinney was first elected to the city council in 2014 and served for five years before stepping down. His resignation came 24 hours before his company was scheduled to apply to the council for a host community agreement with the city of Grafton to establish a marijuana company in the town.
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