The ongoing scandal at Concord Casino has led to Sanborn's arrest on further charges of fraud.
On Wednesday, October 16th, Sanborn, a former state senator, was taken into custody on a charge of theft by fraud. He allegedly inflated the casino's gross receipts by about $1 million (£766,665/€920,500) in 2020 when he applied for Covid relief money. According to the New Hampshire Bulletin, this resulted in a $188,474 boost to his grant amount. Sanborn may spend between seven and fifteen years behind bars if found guilty.
John Formella, the state's attorney general, initiated a fraud inquiry last August; this most recent accusation is unrelated to that probe. The inquiry against Sanborn centres on allegations that he embezzled $844,000 from the Covid program. Two Porsches and a Ferrari, one of which was a present for his wife, state lawmaker Laurie Sanborn, were among the three sports cars he allegedly bought with that sum.
The casino, housed in a sports bar, was also rented out to him, and he paid himself back in full. Even though casinos did not have a legal right to relief funds in the state, Sanborn lied about the company's origin and, allegedly, its earnings. The original investigation did not result in any charges being filed. However, Sanborn has subsequently filed a lawsuit against Formella's agency, claiming that investigators were in the wrong when they searched for sensitive information.
The significance of this most recent accusation on the prior inquiry is uncertain.
Casino sold forcibly following initial fraud scandal
The state ordered Sanborn to close and sell Concord Casino in December in response to the first probe. Michael King, the initial judge in the case, refused the state's request to cancel his gaming licence and instead set the sale deadline for June 30. However, if a deal was about to be finalised, the deadline could be extended to 30 September.
Gregory Albert, the newly appointed judge, approved the September extension when he took over the case in June. Then, on September 22nd, Albert granted yet another psuedo-extension by way of a murky legal loophole, effectively adding another fifty days to the process.
It has been rumoured that Sanborn's team has secured a buyer. The state lottery has finished vetting the purchase for appropriateness and forwarded their results to Formella's office. That review will take place at its own pace; if the purchaser is deemed unsuitable, the casino's licence will be revoked for a period of two years. As a result, the casino, or its remnants, would be almost completely useless.
the verdict handed down by Albert
The two camps have been more divisive from the beginning of the process. They both claim the other is trying to drag things out. Albert's decision was counterproductive.
In the last seven days, lawyers on both parties have filed briefs contesting the ruling. According to senior assistant attorney general Jessica King, the state has interpreted Sanborn's licensing as being revoked because it was uncertain. The lawyers for Sanborn have then asked for a new hearing.
"...Sanborn would have welcomed a chance to gracefully end this case had the state credibly assured the buyer or (Sanborn) that the (attorney-general's office) would finish its (suitability) review by a date certain," they stated, as reported by the Bulletin. The clock is ticking, and the attorney general's office has not provided any clarity.
No one knows how much longer Sanborn may have to sell the casino now that both parties have challenged. The newest accusation against Sanborn adds another twist. No individual or entity may hold a gaming licence for a period of ten years after a criminal conviction, according to state law. It is not apparent whether the liability would also transfer given that the licence is being transferred to another organisation.
