Former Massachusetts City Official Pleads Guilty to Defrauding Cannabis Investors

A former Grafton, Massachusetts, selectman has pleaded guilty to federal fraud charges related to allegations he defrauded investors in his cannabis company, the Worcester Telegram & Gazette reports. Bruce W. Spinney III pleaded guilty September 9 in U.S. District Court in Worcester to two counts of wire fraud and one count of making an unlawful monetary transaction.  

Spinney was arrested in June 2024 following allegations that he defrauded investors in a cannabis company during the permitting process in Grafton and Mendon between 2019 and 2021. Prosecutors claimed that Spinney took hundreds of thousands of dollars from investors but used the cash to pay down debts from his linen and rental businesses, for personal purchases, including electronics and pizza, and to pay off $10,435 in real estate taxes.

In a statement released Tuesday, William H. Connolly, an attorney for Spinney, said his client made a “mistake” and took responsibility for it by pleading guilty. 

“It’s important to note that the investors in this matter were paid back prior to the initiation of any criminal charges. Their investments were for a valuable asset held by Mr. Spinney, and ultimately through the sale of that asset, the investors either received their money back or chose to maintain their investment in a dispensary that is operating today.” — Connolly, in a statement, via the Telegram & Gazette 

Spinney, who resigned from his position on the selectboard prior to seeking a host community agreement for his cannabis facility in Grafton, is expected to be sentenced on December 10. Prosecutors are likely to request that he serve 15 months in prison, according to court records outlined by the Telegram & Gazette.