Former Grafton town official arrested on fraud charges

A former town official from Grafton, Massachusetts, has been arrested on fraud charges, accused of taking hundreds of thousands of dollars from investors for a marijuana company and instead spending that money to pay off the debts of a different business.

Bruce W. Spinney, III, 49, was indicted on three counts of wire fraud and one count of conducting an unlawful monetary transaction Thursday, according to the U.S. District Attorney for Massachusetts' Office. The charges are tied to what prosecutors described as a scheme to defraud investors in a marijuana dispensary venture.

Officials said Spinney resigned as chair of the Grafton Select Board in August 2019. Afterward, he secured hundreds of thousands of dollars for his new business, a marijuana dispensary called Noble Manna, Inc.

Before incorporating the marijuana company, Spinney ran a rental equipment and linen business called Spinney Enterprises that was in debt. Prosecutors allege that rather using his investors' money toward the setup and licensing of Noble Manna locations in Grafton and Mendon as suggested, he used the money to pay down his previous debts from Spinney Enterprises.

Investigators say he paid off debt collectors and outstanding business loans, as well as making cash withdrawals and paying personal expenses. He is also accused of transferring $27,000 worth of that money to pay a debt in an illegal manner.

Spinney was arrested Friday and released with conditions after an appearance in federal court in Worcester. He faces up to 20 years in prison, three years of supervised release and a fine of $250,000 for each wire count fraud. The unlawful monetary transaction charge carries a sentence of up to 10 years in prison, two years of supervised release and a fine of $250,000.

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