Andy Sanborn Pleads Guilty to Federal Fraud Charges Involving COVID-19 Relief Funds

Former New Hampshire state senator Andy Sanborn has pleaded guilty to wire fraud in connection with the illicit acquisition of over $844,000 in federal COVID-19 relief funds. According to the U.S. Attorney’s Office for the District of New Hampshire, Sanborn admitted to misrepresenting the financial status of his business, the Concord Casino, to secure an Economic Injury Disaster Loan (EIDL) intended for struggling small businesses.

Details of the Fraudulent Loan Application

The investigation revealed that Sanborn submitted a fraudulent application to the U.S. Small Business Administration (SBA) in 2021. In his filing, Sanborn significantly understated the gross revenues of his business, Win Win Win LLC, which operated the Concord Casino. By providing inaccurate financial data, he met the eligibility requirements for the EIDL program, which was strictly designed to provide economic relief to businesses impacted by the pandemic. The SBA approved the loan, and Sanborn received $844,000 in federal funds.

Misuse of Federal Relief Funds

Once the funds were deposited into his account, Sanborn diverted the money for personal use rather than business expenses. The Department of Justice reported that Sanborn utilized the loan proceeds to purchase luxury vehicles, including several Ferraris. This misuse of funds violated the terms of the loan agreement, which mandated that the capital be used exclusively for operational costs, such as payroll, rent, or utilities, to sustain the business during the public health crisis.

Legal Consequences and Sentencing

Following his plea of guilty to wire fraud, Sanborn faces significant federal penalties. Under federal sentencing guidelines, wire fraud carries a maximum penalty of 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. The court will determine the final sentence based on the severity of the crime and federal sentencing statutes. The investigation was conducted by the U.S. Secret Service, which focused on the integrity of federal pandemic relief programs.

Impact on New Hampshire Gaming Oversight

The criminal charges against Sanborn coincide with broader scrutiny of his business practices. Prior to the federal indictment, the New Hampshire Lottery Commission had moved to revoke the gaming license for the Concord Casino. According to state officials, the investigation into the misuse of federal funds raised serious concerns regarding Sanborn’s suitability to hold a gaming license in the state. This case underscores the ongoing federal efforts to prosecute individuals who exploited pandemic-era financial assistance programs for personal gain.

Key Takeaways

• Charge: Andy Sanborn pleaded guilty to one count of wire fraud.
• Financial Scope: The fraud involved the misappropriation of $844,000 in federal EIDL funds.
• Evidence: Prosecutors demonstrated that Sanborn falsified revenue reports to qualify for the loan and subsequently purchased luxury vehicles with the proceeds.
• Regulatory Action: The case led to the revocation of his gaming license by the New Hampshire Lottery Commission.

Frequently Asked Questions

What is an EIDL loan? The Economic Injury Disaster Loan (EIDL) is a program managed by the SBA to provide low-interest financing to small businesses suffering substantial economic injury due to disasters, including the COVID-19 pandemic.

What happens after a guilty plea? Following the entry of a guilty plea, the case moves to the sentencing phase, where a federal judge considers the facts of the case, sentencing guidelines, and arguments from both the prosecution and the defense before issuing a final judgment.