A former Bay State elected official has been busted by the feds for allegedly defrauding traders in his marijuana firm.
Bruce Spinney III, who was beforehand a chair of the Grafton Choose Board, was arrested on Friday by FBI Boston particular brokers.
The 49-year-old man was indicted on three counts of wire fraud associated to a scheme to defraud traders in his marijuana firm, in response to the Massachusetts U.S. Legal professional’s Workplace. He was additionally indicted on one depend of conducting an illegal financial transaction.
The feds allege that after Spinney resigned as chair of the Grafton Choose Board in August 2019, he solicited a whole bunch of 1000’s of {dollars} from a number of traders for his new marijuana dispensary enterprise, Noble Manna, Inc.
Earlier than incorporating Noble Manna in October 2019, Spinney operated Spinney Enterprises — a rental gear and rental linen enterprise that collected giant quantities of debt.
Spinney allegedly instructed Noble Manna traders that he can be utilizing the cash towards the development and licensing of marijuana dispensaries in Grafton and Mendon.
“However, it is alleged that contrary to his representations about his use of the investment money, Spinney immediately used investors’ money to pay-down previously existing debts for his linen and rental business including payments to debt collectors, outstanding business loans, cash withdrawals and personal expenses,” the U.S. Legal professional’s workplace mentioned in an announcement.
Additionally in March 2020, Spinney allegedly used the proceeds of the wire fraud scheme to switch $27,000 to pay a debt associated to his rental enterprise in an illegal financial transaction.
