CONCORD — House Speaker Pro Tem Laurie Sanborn, R-Bedford, resigned Friday as chairman of a high-powered commission on charity casinos a day after state regulators sought to indefinitely suspend the gambling business license held by her husband, former state Sen. Andy Sanborn, over allegations that he fraudulently misspent COVID-19 relief funds.
Andy Sanborn denied any wrongdoing and indicated he would seek a public hearing before the New Hampshire Lottery Commission to contest his suspension.
Laurie Sanborn has not commented on the matter, but House Speaker Sherman Packard, R-Londonderry, confirmed she was stepping away from the casino gaming panel.
“Given its importance, I feel it was appropriate for Rep. Sanborn to resign as chair of the Commission to Study the Effect of Recent Changes Made to the Charitable Gaming Laws at this time, so there will be no distractions from the good work they intend to do,” Packard said in a statement.
House Democratic Leader Matt Wilhelm of Manchester said Sanborn should go further.
“It was appropriate that Rep. Laurie Sanborn has decided to step away from the commission directly involved in the oversight of charitable gaming, however she remains the chair of the House Ways and Means Committee, where members will resume work on retained bills specific to charitable gaming this month,” Wilhelm said.
“I have asked that Speaker Packard remove her from her leadership position on Ways and Means Committee to salvage public trust in our legislative process.”
Attorney General John Formella and State Lottery Executive Director Charles McIntyre said Thursday their independent reviews concluded Andy Sanborn deliberately failed to mention he ran a charity casino when he secured an $844,000 loan from the U.S. Small Business Administration.
Casino businesses were ineligible to receive those dollars.
Both regulators said Sanborn spent more than half the loan, $438,000, on inappropriate personal expenses, including three sports cars, one an $80,000 Ferrari he gifted to Laurie Sanborn.
He also spent nearly $30,000 of the money on planning for a larger casino in Concord.
In all cases, the regulators allege Andy Sanborn listed the spending as ordinary operating expenses of the Concord Casino.
For example, the AG and lottery claimed Sanborn simply listed the sports car buys as “necessary equipment purchases” on the casino’s books.
Formella said that in addition to the regulatory sanction Sanborn faces, his office has begun a criminal probe into the casino and the Sanborns’ actions.
He has referred the case to U.S. Attorney Jane Young, whose office would prosecute in a case of fraudulent use of federal COVID-19 money.
