BOSTON -- The neighbor of a Braintree man who was found dead in Connecticut has been charged with murder in connection with the man's death.

Investigators said Lucas Walters, 28, was charged with first-degree murder in the death of Jeffrey Phillips, 31.

Prosecutors said the two neighbors were smoking near a shed on July 24 when Walters asked Phillips for some money. An argument ensued about outstanding debt, which ended with Phillips hitting Walters with a rake, and Walters hitting Phillips in the back with an ax, killing him, prosecutors said.

Prosecutors said Walters kept the body in the shed for two days before bringing it to a wooded area in Connecticut.

The Braintree police had been investigating Phillips' disappearance since his parents reported him missing on Monday.

On Wednesday night, Walters went to the Braintree police station and told detectives, "I killed him by accident, I'm crazy," according to the police report.

Prosecutors said Walters used the victim' credit card at a Sunoco gas station to buy gas and cigarettes, and traded the victim's television, laptop and Xbox game for crack cocaine.

Walters was ordered held without bail and will undergo a psychiatric evaluation.