Marblehead 'Monk' Charged In $3.6 Million COVID-19 Fraud Scheme

MARBLEHEAD, MA — A Marblehead man and woman were set to face charges in federal court on Thursday accusing them of collecting $3.6 million in fraudulent COVID-19 funds intended to benefit several nonprofit religious organizations and related businesses on the North Shore that they then spent on exclusive memberships, expensive wine, property, renovations and a $40,000 wristwatch.

The U.S. Attorney's Office said Brian Andrew Bushell, 47, and Tracey Stockton, 64, were charged with conspiracy to commit wire fraud and unlawful monetary transactions.

The U.S. Attorney's Office said Bushell presented himself as a Christian monk who controlled the charitable foundation St. Paul's Foundation, the monastic house Shrine of St. Nicholas the Wonderworker, Patron of Sailors, Brewers and Repentant Thieves, a reported monastery house where the couple lived that they called the Annunciation House, the Marblehead Brewing Co. and the Marblehead Salt. Co.

Stockton served as Bushell's attorney and represented the businesses.

"We allege that these two individuals engaged in brazen, criminal behavior that took advantage of our government's efforts to rescue organizations — both for-profit and nonprofit — by assisting with specific, legitimate expenses during the global pandemic," U.S. Attorney Rachael Rollins said. "Pandemic relief funds are not 'free money' — they are a lifeline designed to help business owners and nonprofit leaders experiencing real economic hardship."

The couple is accused of "vastly overstated the organizations' operational expenses" while applying for CARES Act funding shortly after the coronavirus health crisis began in 2020. They are accused of submitting false income statements, and fabricated organization revenues and expenses, to qualify for $3.5 million in funds for St. Paul's, St. Nicholas, Annunciation House and Marblehead Salt.

Bushell and Stockton are also accused of inflating the number of employees and payroll expenses to gain more than $100,000 in Paycheck Protection Program funding. The U.S. Attorney's Office said at least eight of the employees listed were never employed at any of Bushell's organizations.

Joseph Bonavolonta, Special Agent in Charge of the FBI Boston Division, said the COVID-19 funds were spent on exclusive memberships, expensive wine, property, renovations and "even a $40,000 wristwatch."

"Their alleged greed is an affront to every hard-working taxpayer, and during these challenging times where scammers are doing everything they can to defraud people of their hard-earned money, the FBI is doing everything we can to make sure they don't succeed," Bonavolonta said.

The U.S. Attorney's Office accused Bushell and Stockton of spending more than $1 million of the CARES Act proceeds for extensive renovations to two Marblehead properties they planned to develop into a monastic complex that featured a chapel, brewery, beer garden, approximately $90,000 in audio video system equipment and nearly $40,000 in antique furniture.

Bushell, who the U.S. Attorney's Office said claimed to have taken a vow of poverty, is also accused of fraudulently obtaining CARES Act funds to purchase over $40,000 in Swiss watches, a nearly $7,000 Goyard designer handbag for Stockton, and $2,400 on items from Hermès and other luxury goods.

"Our government should not and will not foot the bill for fancy designer handbags and lavish lifestyles," Rollins said. "Hard-working people deserve these funds."