A Marblehead man and woman involved with several religious organizations and businesses were arrested yesterday for allegedly submitting fraudulent applications to receive pandemic-related U.S. Small Business Administration loans.
Brian Andrew Bushell, 47, and Tracey M.A. Stockton, 64, were charged with conspiracy to commit wire fraud and unlawful monetary transactions, according to a statement from the U.S. attorney’s office.
According to the charging documents, Bushell, a purported Orthodox Christian monk who presented himself as “Father” and “Rev. Fr.” Bushell or Andrew, controlled several Marblehead-based organizations. These organization included an Orthodox Christian charitable foundation called St. Paul’s Foundation; a monastic house known as the Shrine of St. Nicholas the Wonderworker, Patron of Sailors, Brewers & Repentant Thieves; Annunciation House, a purported residence for clergy; a monastic brewery, Marblehead Brewing Co.; and a craft saltern known as Marblehead Salt Co.
Stockton, a Massachusetts attorney, was general counsel and authorized representative of these organizations, the statement said, and Bushell and Stockton lived together at the Marblehead residence they called Annunciation House.
Shortly after CARES Act funds became available in April 2020, Bushell, with Stockton’s assistance, allegedly began submitting numerous applications to the Small Business Administration to receive Economic Injury Disaster Loans for the organizations that he controlled, the statement said.
Prosecutors allege that in the applications Bushell overstated the organizations’ 2019 operational expenses to obtain larger loan amounts. As part of the applications to the SBA, Bushell and Stockton allegedly submitted false documents, including income statements, that fabricated the organizations’ revenues and expenses.
Based on these applications and subsequent loan increase requests, Bushell and Stockton obtained $3.5 million in EIDL funds for St. Paul’s, St. Nicholas, Annunciation House and Marblehead Salt, the statement said.
The charging documents also allege that Bushell and Stockton submitted numerous Paycheck Protection Program applications for Bushell’s organizations. In supporting documentation for the applications as well as in correspondence with PPP lenders, Bushell and Stockton allegedly inflated the number of employees and the amount of payroll expenses for each organization. Prosecutors allege that Bushell and Stockton listed as employees at least eight individuals who were never employed by any of Bushell’s organizations. Bushell and Stockton obtained $146,608 in PPP funds.
Joseph R. Bonavolonta, special agent in charge of the FBI’s Boston division, said in the statement that Bushell and Stockton spent the funds on exclusive memberships, expensive wine, property, renovations and a $40,000 wristwatch.
Bushell and Stockton are scheduled to appear in Boston federal court on Friday.
