Former Concord Casino Owner Pleads Guilty to Federal Fraud Charges

Former New Hampshire state senator and owner of the now-shuttered Concord Casino, Andy Sanborn, has agreed to plead guilty to a federal fraud charge. The charge stems from the diversion of more than $255,000 in COVID-19 relief funds for personal use.

Federal Plea Agreement

According to court documents obtained by the Concord Monitor, Sanborn is accused of stealing government funds. He applied for and received $844,000 in Economic Injury Disaster Loan (EIDL) funds during the pandemic. Sanborn certified that this money would be used solely as working capital for his business, operating under the name Win Win Win.

Prosecutors allege that Sanborn misused a portion of these funds for personal purchases, including a 2006 Porsche Cayman bought for $48,750 in January 2022.

Under the terms of a signed plea agreement, Sanborn faces one year and one day in federal prison. He will also be required to repay the full $255,232.72 that he misappropriated. In exchange for his guilty plea, federal prosecutors have agreed not to bring charges against the casino itself or his wife, former state Representative Laurie Sanborn.

The federal case originated from an eight-month state investigation. This investigation revealed that Sanborn had allegedly obtained pandemic loans fraudulently by misrepresenting his business on the loan application. Notably, he omitted the "Concord Casino" trade name and listed the business activity simply as "Miscellaneous Services." New Hampshire's Attorney General John Formella subsequently referred the case to federal prosecutors.

National Crackdown

This development is part of a broader national effort by the Department of Justice to prosecute pandemic relief fraud. Federal authorities have indicated that over 15 individuals in New Hampshire have already been charged in connection with such schemes.

Separate State Charges

Sanborn is also facing separate state theft charges related to New Hampshire’s Main Street Relief Fund. In this case, prosecutors allege that Sanborn inflated the Concord Casino’s revenue by approximately $1 million. This inflation was reportedly done to secure an additional $188,000 in state aid.

Jury selection for the state case is scheduled for September, with the trial anticipated to commence in February.

Concord Casino Operations

Andy Sanborn opened the Concord Casino in October 2019. The establishment operated under New Hampshire's charitable gaming laws, offering games such as blackjack, roulette, and poker. These laws mandate that a portion of the proceeds from gaming activities be donated to registered non-profit organizations.

However, the New Hampshire Lottery Commission ordered the casino to suspend all operations effective January 1, 2024. The commission cited Sanborn's unsuitability to hold a gaming license as the reason for the suspension.

Implications for the Gaming Industry

This case highlights the scrutiny that has been placed on the use of pandemic relief funds, particularly within industries that have experienced significant regulatory oversight, such as the casino and gaming sector. The misuse of funds intended for business support, especially when linked to charitable gaming operations, raises concerns about accountability and regulatory compliance. For readers interested in the legal and regulatory landscape of the gambling industry, this case serves as a stark reminder of the severe consequences for financial misconduct. It underscores the importance of transparency and adherence to both federal and state regulations, even during times of economic disruption.

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| Aspecto | Detalle |
|—|—|
| Individuo | Andy Sanborn |
| Cargo | Propietario anterior del Concord Casino, exsenador estatal de New Hampshire |
| Cargo federal | Declaración de culpabilidad por fraude |
| Fondos malversados | Más de $255,000 en fondos de ayuda COVID-19 |
| Consecuencias | Pena de prisión y reembolso de fondos |
| Cargos estatales | Robo relacionado con el Fondo de Ayuda Main Street |

Fuente: Casino.org News – https://www.casino.org/news/former-concord-casino-owner-andy-sanborn-to-plead-guilty-in-federal-fraud-case/

Datos clave