US State Senator Busted for Misusing $844,000 in Federal Funds

Andy Sanborn, the owner of Concord Casino in New Hampshire and a former state senator, is facing allegations of misusing federal funds and maintaining poor financial records.

A hearing has been held to determine whether Sanborn should retain his gaming property license.

Sanborn is accused of misusing $844,000 in COVID-19 relief funds, which he allegedly used for personal expenses, including the purchase of luxury cars.

The funds were obtained through the Small Business Administration (SBA) between December 2021 and February 2022.

The New Hampshire Lottery Commission, which oversees the state's charitable gaming casinos, has moved to suspend Sanborn's gaming license indefinitely for these alleged actions.

The commission also alleges that Sanborn failed to file "true and accurate" financial records of his gaming operations.

Leila McDonough, auditing administrator for the New Hampshire Lottery Commission’s Investigation and Compliance Division, testified that Sanborn was uncooperative with her office.

She found it difficult to get the required financial filings from Sanborn on time, and the records that were submitted had revisions, raising questions about the accuracy of the financial statements.

Sanborn's defence team, however, argues that the state's investigation was sloppy and incomplete.

They claim that a business consultant, not Sanborn, submitted the applications for the federal pandemic assistance.

They also refute the state's allegations that Sanborn used the federal money for personal gain, arguing that the state has not proven these allegations.

Sanborn's attorneys also argue that the state did not take into account the business growth and need for expansion, which came with increased rent.

They claim that the state did not reach out to the SBA to see if they thought they had been defrauded, or to any forensic accountant to look into the books.

The outcome of the hearing could result in Sanborn losing his gaming license and being barred from participating in the state's charitable gaming business model. A decision on his gaming license is expected by December 31, 2023.