New Hampshire’s Concord Casino is not a big-time, Las Vegas-style resort and its owner, Andy Sanborn, is not a global kingpin. Yet Sanborn’s legal troubles, including a new fraud charge, and their impact on the casino have made for a fascinating saga.
Sanborn, a former state senator, was arrested on Wednesday (16 October) on a theft by deception charge. When applying for Covid relief funds in 2020, he reportedly misrepresented the casino’s gross receipts by approximately $1m (£766,665/€920,500). This increased his grant allowance by $188,474, per the New Hampshire Bulletin. If convicted, Sanborn could face a prison sentence of 7.5-15 years.
This latest charge is separate from a fraud investigation that was launched last August by state attorney general John Formella. In that investigation, Sanborn is accused of misappropriating $844,000 in Covid funds. He reportedly used that money to purchase three sports cars – two Porsches and a Ferrari – the latter of which was a gift to his wife, state representative Laurie Sanborn.
He also paid himself back rent for the casino, which is located inside a sports bar. Under state law, casinos were not entitled to relief funds, but Sanborn misrepresented the nature of the business and, apparently, how much it earned. No charges have been filed in the original investigation. But Sanborn has since sued Formella’s office, alleging that investigators wrongfully seized confidential documents in their searches.
It is unclear how this latest charge will impact the previous investigation.
First fraud scandal led to forced casino sale
In response to the first investigation, Sanborn was ordered by the state last December to shutter and sell Concord Casino. The state asked that his gaming licence be revoked altogether, but the case’s original judge, Michael King, declined and instead set a sale deadline of 30 June. There was a stipulation, though, that the deadline could be pushed to 30 September if a deal was imminent.
When the new judge, Gregory Albert, assumed the case in June, he granted the September extension. Then on 22 September, Albert granted another psuedo-extension through an ambiguous legal workaround that essentially extended the process by about 50 days.
Sanborn’s team has reportedly found a buyer. The state lottery has completed its suitability review of the buyer and sent its findings to Formella’s office. There is no timetable for that review and, if the buyer is not found suitable, the casino’s licence would be suspended for two years. That would render the casino – or what’s left of it – virtually worthless.
Albert’s ruling challenged by both sides
Since the start of the process, the two sides have become increasingly contentious. Both argue the other is intentionally stalling. Albert’s ruling did not help.
Both sides have made filings in the last week challenging the decision. Senior assistant attorney-general Jessica King argues it was unclear and has led the state to interpret Sanborn’s licence as being revoked. Sanborn’s attorneys, in turn, have requested a rehearing.
“…Had the state credibly assured the buyer or (Sanborn) that the (attorney-general’s office) would finish its (suitability) review by a date certain, (Sanborn) would have welcomed a chance to gracefully end this case,” they wrote, per the Bulletin. “But there is no clarity from the (attorney-general’s office) and the clock is ticking.”
With both sides having challenged, it’s anyone’s guess how much longer Sanborn could have to sell the casino. Another wrinkle is Sanborn’s latest charge. Per state law, any person or business convicted of a felony may not hold a gaming licence for 10 years. Given that the licence is being transferred to another entity, it is unclear if the liability would also transfer.
