Rain. Low near 60F. Winds SE at 15 to 25 mph. Chance of rain 100%. Rainfall possibly over one inch. Locally heavy rainfall possible..

Rain. Low near 60F. Winds SE at 15 to 25 mph. Chance of rain 100%. Rainfall possibly over one inch. Locally heavy rainfall possible.

Father Andrew Bushell, in a file photo from 2016 when he was opening the Marblehead Salt Company. 

Father Andrew Bushell, in a file photo from 2016 when he was opening the Marblehead Salt Company. 

MARBLEHEAD — Federal prosecutors have charged a man known in Marblehead as "Father Andrew,” and an attorney with fraudulently obtaining $3.6 million in pandemic relief funds for several "purported" religious organizations and businesses he and the attorney controlled. 

Brian Andrew Bushell, 47, and Tracey M.A. Stockton, 64, were arrested on charges of conspiracy to commit wire fraud and unlawful monetary transactions.

After an initial court appearance Thursday afternoon, they were expected to be released on bond with conditions by a federal magistrate judge.

The two live together at 22 Endicott Ave. in Marblehead, which is also referred to as “Annunciation House.”

Investigators also conducted searches of several properties related to the pair.

Bushell, whom investigators describe as "a purported Orthodox Christian monk who presented himself as 'Father' and 'Rev. Fr.' Bushell or Andrew," and Stockton, a licensed attorney in Massachusetts, used the funds to purchase exclusive memberships at clubs in New York, expensive wine, property, renovations, and even a $40,000 wristwatch, according to FBI Special Agent in Charge Joseph R. Bonavolonta.

Prosecutors allege that Bushell and Stockton allegedly spent over $1 million of the CARES Act proceeds for extensive renovations to two Marblehead properties at 120 and 124 Pleasant St. which they planned to develop into a “monastic complex” that featured a chapel, brewery and beer garden. 

They also purchased furniture and fixtures, including $24,000 in sinks and marble tile, five gas fireplaces, and had put down a $28,000 deposit toward appliances that were worth $76,000, prosecutors allege.

Bushell, who prosecutors noted had claimed to have taken a vow of poverty, also allegedly used fraudulently obtained CARES Act funds to purchase a $40,000 Swiss Breguet wristwatch and an antique Breguet clock valued at $27,000, a $6,800 custom monogrammed Goyard handbag for Stockton, and $2,400 on items from Hermès and other luxury goods, they said in announcing the indictments. 

The pair controlled several entities, including St. Paul's Foundation, the Shrine of St. Nicholas the Wonderworker, Patron of Sailors, Brewers and Repentant Thieves, Annunciation House, Marblehead Brewing Company and Marblehead Salt Company.

According to an affidavit, this spring, they also purchased a property at 12 Conant Street through an entity called “Egypt House” for more than $800,000, telling a lender that they planned to rent it to Ukranian refugees – but also allegedly telling the same lender that they had entered a market-rate lease for $4,500 a month to rent out the property.

Stockton, a licensed attorney, served as legal counsel and representative of the various entities.

Prosecutors allege that soon after the the CARES Act made funds available to small businesses and other employers, Bushell began submitting multiple applications for Economic Injury Disaster Loans, in which he "vastly overstated" their expenses and fabricated revenue and expense reports, often claiming the same expenses among multiple entities.

As a result, prosecutors allege, Bushell and Stockton obtained $3.5 million in EIDL funds for St. Paul's, St. Nicholas, Annunciation House and Marblehead Salt. 

They also obtained Paycheck Protection Program funds for the various entities by inflating the number of employees and payroll expenses, claiming at least eight individuals who had never worked for any of the organizations.

In an affidavit, investigators say that the individuals falsely claimed as employees ranged from contractors and subcontractors hired to work on the Pleasant Street properties to a photographer, an iconographer, to several acquaintances.

The two also claimed salaries that would have put them at $100,000 per year or more for each of the entities, according to the affidavit.

The pair also set up an entity called the “Holy Metropolis of Rodopolis and Exarchate of Lazica” in July, 2020, which purported to assist an Orthodox priest identified in court papers by his initials in obtaining CARES Act funds. However, that priest did not receive any funds.

Investigators allege that with each announcement that the limit for EIDL funds would be raised, the pair would ask for increases in their loan amount up to the maximum.

During their court appearance on Thursday, the pair declined to submit financial statements and told the federal magistrate that they intend to hire private attorneys. They also asked for a probable cause hearing, which has not yet been scheduled.

U.S. Attorney Rachael Rollins called the pair’s actions "brazen" and said they engaged in behavior "that took advantage" of the government's efforts to rescue both businesses and nonprofits during a global pandemic. 

“Pandemic relief funds are not 'free money,' they are a lifeline designed to help business owners and nonprofit leaders experiencing real economic hardship," said Rollins. "Our government should not and will not foot the bill for fancy designer handbags and lavish lifestyles. Hard-working people deserve these funds.”

In 2019, Bushell sued the town of Marblehead after a building permit for his proposed beer garden and community center on Pleasant Street was suspended due to the departure of the architect overseeing the project. By the time it was reinstated, after a new architect was hired, Bushell had gone to court claiming religious discrimination, but the complaint was subsequently dismissed.

Investigators, in their affidavit, referred to depositions of Bushell in that civil suit that they say call into question his claim of being an Orthodox monk, saying that in a deposition he stated that he had no affiliation with the Boston Orthodox Church.

They also noted that while Annunciation House has been characterized as a monastery, only Bushell and Stockton, and for a time Stockton’s mother, lived in the home.

Courts reporter Julie Manganis can be reached at 978-338-2521, by email at jmanganis@salemnews.com or on Twitter at @SNJulieManganis

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