Rep. Laurie Sanborn has stepped down as the head of a State House committee charged with studying charitable gaming.
The move comes a day after Attorney General John Formella announced Sanborn and her husband, former state Sen. Andy Sanborn, were under criminal investigation related to alleged COVID relief fraud tied to a casino he owns.
Read more: Alleging COVID relief fraud, NH regulators say Andy Sanborn is unfit to run a casino
Andy Sanborn has denied any wrongdoing. Laurie Sanborn’s resignation from the committee was announced Friday by House Speaker Sherman Packard.
“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 written statement.
Laurie Sanborn could not be reached for comment Friday.
The allegations of improper use of COVID aid follow an investigation of Andy Sanborn’s finances carried out as part of a New Hampshire Lottery Commission review of his qualifications to operate a charitable gaming facility.
State regulators have since said that Andy Sanborn is unfit to hold a charity gaming license because, they allege, he fraudulently obtained $844,000 in COVID-19 relief money and used it on luxury personal expenses, including the purchase of three race cars for himself and Laurie Sanborn.
State prosecutors with the Attorney General’s office further allege Andy Sanborn paid himself $183,500 that he claimed was rent payment, by funneling the money into a business he owned.
Regulators also allege Sanborn improperly spent $28,800 in COVID aid to pay for engineering and consulting services related to a new casino he hopes to build on the outskirts of Concord.
The state Lottery Commission is moving to revoke Andy Sanborn's gaming facility license and game operator employer license; he has 10 days to appeal the decision.
In a statement issued Thursday, Andy Sanborn said he has “full confidence our actions were transparent and in complete accordance of the law."
The criminal investigations of the Sanborns come as Andy Sanborn hopes to expand his gambling operations in the capital city.
In June, the city approved Sanborn’s proposal to build a new 43,000-square foot facility on Loudon Road. That project called for table games, a poker room, slot machines, a restaurant and space for live music.
But that plan is already facing legal challenges.
How the criminal investigations could affect these proceedings isn’t clear. The Concord Planning Board approval of the casino has been appealed to Merrimack County Superior Court, on the grounds the public lacked sufficient notice.
The board’s actions on the casino are also expected to be discussed during the Sept. 13 meeting of Concord’s Zoning Board of Adjustment.
