Pandemic Fraud Charges Against Andy Sanborn and Concord Casino: A Legal and Financial Quagmire

In a dramatic development just a week after the indictment of former state Senator Andy Sanborn on pandemic aid fraud charges, the New Hampshire Attorney General’s Office has now brought identical charges against Concord Casino, further entangling Sanborn in a web of legal troubles. This situation poses significant risks not only to Sanborn’s personal reputation but also to the casino’s financial future and its operational permits, crucial for its continued existence in the state’s gaming landscape.

The Charges: An Overview

The charges against Sanborn and his casino, whose registered name is Win Win Win LLC, stem from allegations that the business defrauded the Main Street Relief Fund—a federal assistance program aimed at economically aiding businesses affected by the COVID-19 pandemic—by misrepresenting its operations and losses. Prosecutors allege that Concord Casino received nearly $190,000 more than it should have, totaling $286,600 based on misleading claims about its eligibility.

Key aspects of these allegations include:

• Misrepresentation of Operational History: The casino claimed it had been in operation for at least a year, a prerequisite for eligibility to apply for the funds, when such was not the case.
• Felony Theft Charges: These charges carry not only potential prison time for Sanborn but also the loss of the casino’s gaming license for a decade if convicted. This presents an existential threat to the casino, which has relied heavily on this permit to operate.

Implications of a Possible Conviction

Should Sanborn be found guilty of the felony charges, the consequences could ripple through the state’s gaming and charitable fundraising frameworks. The most immediate concern is the potential prohibition on the casino holding a gaming license for a period of ten years. While it remains uncertain if a conviction would affect a new owner’s license, the Attorney General’s Office has not provided any assurance to prospective buyers, leading to a precarious situation for Sanborn as he attempts to finalize a sale.

The financial stakes are also high. Concord Casino holds the last available historic horse racing license, enabling it to offer slot-like games, a lucrative opportunity given the New Hampshire Lottery Commission’s revenue figures—$640,000 from traditional table games versus a robust $2.7 million from historic horse racing in August alone. As these funds bolster public education in the state, a loss of this revenue stream could be significant.

Backlash from Legal Representatives

Sanborn’s attorney, Zachary Hafer, has publicly criticized the Attorney General’s Office, claiming the separate indictment against the casino is a ploy to obstruct the sale and benefit taxpayers, charities, and the community. Hafer points out that since Win Win Win is a single-member LLC owned entirely by Sanborn, the charges against both him and his casino appear more like coordinated efforts to undermine the potential sale rather than distinct legal actions based on different sets of facts.

This contention speaks to broader concerns about the motivations behind the indictments and their alignment with public interest.

Previous Investigations and Legal Intricacies

The recent charges against Concord Casino are a continuation of a broader legal tumult that began when the Attorney General’s Office launched an investigation into allegations of financial misrepresentation over a year ago. Earlier allegations claimed that Sanborn improperly obtained nearly $844,000 in Economic Injury Disaster Loans, which were not available to casinos.

An administrative judge previously suspended Concord Casino’s gaming license, ordering its closure amid these allegations, but has granted Sanborn additional time to seek a buyer for the establishment. This ongoing legal backdrop adds further complexity to the current crisis, emphasizing the interconnectedness of Sanborn’s financial fortunes and the casino’s operational licenses.

The State’s Financial Interests and Visitors’ Experience

The broader implications of Sanborn’s legal concerns extend into state financial health and public engagement with the casino. The money generated from Concord Casino supports numerous charities, and previous revenue has established vital resources for numerous community initiatives. Last year, the casino managed to allocate around $170,000 to approximately 30 charities before its operational hold was placed effectively at the end of 2023.

The current moratorium on new gaming licenses also adds pressure; the state is keen on ensuring that the historic horse racing market stabilizes and grows without introducing new competitors.

Awaiting Trial and Future Prospects

With an arraignment scheduled for Tuesday in Merrimack County Superior Court, the outcome of these proceedings remains uncertain. Sanborn has not disclosed the identity of his prospective buyer, although it is known that the individual has applied for a gaming license. As both Sanborn and Concord Casino face mounting hurdles, the interplay of legal, financial, and political elements will determine the next phases of this case.

In summary, the indictment against Andy Sanborn and Concord Casino reveals much about the precarious nature of pandemic relief policies, the consequential relationship between legal actions and business operations, and the ongoing challenges of regulation in the gaming industry. As the situation unfolds, stakeholders across the board—from local charities to state officials—will be observing closely, weighing the impacts of these developments on their interests and the larger community.