A former Bay State elected official has been busted by the feds for allegedly defrauding investors in his marijuana company.

Bruce Spinney III, who was previously a chair of the Grafton Select Board, was arrested on Friday by FBI Boston special agents.

The 49-year-old man was indicted on three counts of wire fraud related to a scheme to defraud investors in his marijuana company, according to the Massachusetts U.S. Attorney’s Office. He was also indicted on one count of conducting an unlawful monetary transaction.

The feds allege that after Spinney resigned as chair of the Grafton Select Board in August 2019, he solicited hundreds of thousands of dollars from several investors for his new marijuana dispensary venture, Noble Manna, Inc.

Before incorporating Noble Manna in October 2019, Spinney operated Spinney Enterprises — a rental equipment and rental linen business that accumulated large amounts of debt.

Spinney allegedly told Noble Manna investors that he would be using the money toward the construction 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. Attorney’s office said in a statement.

Also in March 2020, Spinney allegedly used the proceeds of the wire fraud scheme to transfer $27,000 to pay a debt related to his rental business in an unlawful monetary transaction.