Casino Operator Accused of Stealing COVID-19 Funds Stalls Licensing Hearing

Article by : Erik Gibbs Oct 23, 2023

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Andy Sanborn’s legal team cites his ill health as a hindrance to defending against allegations of fraudulently acquiring and misusing COVID-19 relief funds. As a result, a lottery hearing to decide whether his charitable gaming license in New Hampshire should be revoked faced its second postponement in a week.

Hafer, new to the case, requests a two-month extension for a thorough document review, emphasizing Sanborn’s health concerns.

Sanborn is accused of fraudulently obtaining $844,000 in COVID-19 relief funds for lavish expenses. The investigation revealed his attempt to bypass ineligibility for casino funding by using a different trade name and misrepresenting the business activity.

The investigation’s findings were disclosed on August 31, leading to an initially scheduled October 3 hearing. Importantly, the Lottery Commission isn’t mandated to hold a hearing in such cases.

A judge postponed the most recent hearing in response to Sanborn’s attorney’s arguments, which stressed the need for additional time to analyze and gather documents, engage forensic accountants and evaluate witnesses.

Before Hafer’s involvement in the case, Sanborn had to change attorneys on several occasions, with one attorney stepping down due to a conflict of interest.

Hafer cited the need for extra time to identify and question an unnamed advisor Sanborn consulted before submitting the COVID-19 funding application.

Debra Douglas, Chair of the Lottery Commission, expressed concerns about the hearing delay, citing potential harm to the agency’s reputation.

Despite the hearing’s rescheduling to a later date, Sanborn’s legal team still argued for more preparation time. The day before the originally set the hearing, a temporary restraining order from Merrimack County Superior Court Judge Martin Honigberg postponed the October 13 hearing against Douglas and the Commission.

The Attorney General’s office clarified that the order pertained to the hearing’s timing, not the investigation’s merits.

The court directed the parties to set a hearing within ten days or consider extending the order. Douglas’s desire for a pre-travel hearing raised questions about due process.

The Lottery Commission has not submitted written filings. Sanborn’s operator and facility license expires on December 31.

A finding of unsuitability in the hearing would lead to license disqualification and initiate revocation. Regardless of the hearing’s outcome, Sanborn can appeal to the state Supreme Court.