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Busted Flush: Sanborn Indicted for COVID Fraud

Andy Sanborn’s luck avoiding criminal charges crapped out Wednesday when the casino owner was arrested on one count of theft by deception for allegedly lying on a COVID relief application.

It’s the first criminal charge against the former Republican state senator since he came under scrutiny from state investigators last year. And the state may be ready to double down.

Michael Garrity, communications director for the New Hampshire Department of Justice, said Wednesday the investigation into Sanborn and his Concord Casino is active and ongoing.

More than a year ago, New Hampshire Attorney General John Formella announced the investigation into Sanborn and his wife, state Rep. Laurie Sanborn (R-Bedford), after irregularities were found during a state audit of the casino. At the time, Formella accused Sanborn of accepting $844,000 in federal COVID funds and then spending the cash on sports cars and other inappropriate items. Sanborn allegedly prepaid himself hundreds of thousands of dollars in rent for the business with the COVID cash.

Thursday’s charge alleges a different COVID scam. According to a Department of Justice statement, Sanborn lied on his application for a state Main Street Relief Fund grant. Sanborn allegedly inflated his casino revenue by $1 million. That bluff paid off when the grant came in, and Sanborn got $188,474 more in grants than he was entitled to, according to the statement. 

In December, Sanborn was ordered to sell the Concord Casino after Administrative Law Judge Michael King ruled he had engaged in COVID fraud. Sanborn’s “Win Win Win LLC” gaming license was suspended, and he was given a 6-month deadline to sell the business.

Since then, Sanborn has requested multiple deadline extensions and is currently using an extension to give a potential casino buyer more time to undergo a state review of his suitability. Administrative Law Judge Gregory Albert issued the extension.

Last week, lawyers with the Attorney General’s Office filed a motion seeking clarity on Albert’s extension, citing the fact Albert himself wrote in his extension order that he lacks the legal authority to grant Sanborn extra time.

Former GOP state Sen. Andy Sanborn’s most recent deadline extension on the order to sell his Concord Casino may have broken the rules, according to the administrative judge who gave him that extension.

Meanwhile, Sanborn is suing the state over aspects of how it has handled his case, and at least one issue has arisen.

Judge John Kissinger has ordered prosecutors to explain how documents from Sanborn’s lawyers that could be considered legally privileged ended up in the hands of the state’s investigative team. Kissinger ordered the state to provide to the court “factual affidavits on issues related to the past handling of seized documents and materials (including electronically stored information), as well as how clearly privileged documents may have been missed or not properly screened by the taint team,” Kissinger wrote in an Aug. 23 document.

All of which points to a conspiracy by the state to strip Sanborn of his license rather than allow him to sell his valuable asset, Sanborn’s attorneys say.

In an email to New Hampshire Bulletin, Sanborn’s attorneys, Zachary Hafer and Adam Katz, wrote:

“In an eleventh-hour attempt to sabotage a sale of Win Win Win, the same AG who has been enjoined repeatedly for violations of Mr. Sanborn’s constitutional rights by three New Hampshire superior court judges, who has had his legal positions soundly rejected time and again by administrative law judges (overseeing the licensing case), and whose office is currently facing potential sanctions for prosecutorial misconduct, has now arrested Mr. Sanborn on the eve of a sale to a qualified buyer.

“We are disappointed, but not surprised. And we remain confident that the New Hampshire judiciary will continue to do justice and hold the AG accountable.”

State: No Legal Authority for Sanborn’s Casino License Extension

Former GOP State Sen. Andy Sanborn’s most recent deadline extension on the order to sell his Concord Casino may have broken the rules, according to the administrative judge who gave him that extension.

Sanborn’s latest official deadline to sell his Concord Casino passed two weeks ago on Sept. 30. Sanborn did get a vaguely defined extension from Administrative Law Judge Gregory Albert to keep his license pending a state review of the potential buyer’s suitability.

Last week, lawyers with the New Hampshire Attorney General’s Office filed a motion seeking clarity on Albert’s extension, citing the fact Albert himself wrote in his extension order that he lacks the legal authority to grant Sanborn extra time.

“Despite this conclusion, [Albert] then contradicted this conclusion by carrying out in practice what [Albert] stated he had no authority to do: the Order stayed the revocation penalty for 30 days after the notice of decision on a motion for rehearing, or if no motion for rehearing is filed, the 16th business day following the Order,” the Attorney General’s motion states.

Albert’s extension allows Sanborn to keep the suspended license until the state is done vetting the potential buyer.

Administrative Law Judges, also known as hearings officers, work for individual state agencies and handle legal questions on how different state laws and regulations are implemented. Officers conduct hearings, write legal opinions, and recommend policies and regulations. They can also impose discipline, such as in the Sanborn case.

Albert replaced retired Administrative Law Judge Michel King, who in December first suspended Sanborn’s gaming license and ordered Sanborn to sell the business. King gave the casino mini-magnate a six-month deadline to sell or face license revocation. 

King found Sanborn engaged in deception when he applied for the $844,000 in COVID loans, and that Sanborn spent the money inappropriately, including the purchase of a Porsche and a Ferrari. According to Formella, Sanborn’s wife, state Rep. Laurie Sanborn (R-Bedford), got the Ferrari as a gift. The alleged COVID fraud first came to light during a state audit more than a year ago.

Sanborn has been getting license extensions since last summer, arguing he cannot sell the business without a license. He’s accused New Hampshire Attorney General John Formella of slowing the sales process. 

Sanborn, a Bedford Republican who was once a top player in state politics, is currently under criminal investigation for COVID relief fraud centered on his casino business. He hasn’t been charged with any crime.

Sanborn is also suing the Department of Justice over matters connected to the criminal investigation. The lawsuit is under seal, though some redacted documents may start getting released later this month. According to one document in the lawsuit that has been made public so far, there is a dispute over evidence seized by investigators, with Sanborn’s side claiming the state had legally privileged information, possibly such as attorney-client communications.

Sanborn Files Mystery Lawsuit Against Attorney General

He’s accused of COVID fraud and under orders to sell his Concord Casino. But former state Sen. Andy Sanborn just raised the bet.

Sanborn filed a new civil lawsuit against New Hampshire Attorney General John Formella in Merrimack Superior Court in Concord on July 30. Sanborn and his legal team are keeping their cards close to their vests. The complaint, as well as nearly all of the filings in the case, are sealed.

Mark Knights, one of Sanborn’s lawyers, declined to comment when contacted by NHJournal. The New Hampshire Attorney General’s Office did not respond to a request for comment as well.

What is known about the case from the publicly available information is that Sanborn is seeking an injunction of some kind, presumably to block the state from taking a particular action. Additionally, the Attorney General’s Office has prosecutors Dan Jimenez, David Lovejoy, and Alex Kellerman assigned to the case. Jimenez is part of the Public Integrity Unit which investigates wrongdoing by public officials. Lovejoy is part of the Criminal Justice Bureau. Kellerman is a former corporate attorney now working for the attorney general.

Sanborn’s legal drama began a year ago when Formella publicly accused Sanborn and his wife, state Rep. Laurie Sanborn (R-Bedford), of COVID relief fraud. According to Formella, the couple took $844,000 in COVID relief payments for their Concord Casino and used the money to pay themselves via rent and buy themselves sports cars.

The Sanborns deny wrongdoing and have yet to be charged with a crime. However, the state pushed to take away the Concord Casino gambling license based on the alleged fraud. In December 2023, Administrative Law hearing officer Michael King found Sanborn engaged in deception when he applied for the COVID loans and that Sanborn spent the money inappropriately.

“The misrepresentations on the EIDL [Economic Injury Disaster Loan] application and the subsequent use of the proceeds for expenditures not allowed by that loan constitute ‘conduct by the licensee that undermines the public confidence in charitable gaming,’” King wrote in his order.

Aside from using the money to buy a Porsche and a Ferrari, Sanborn allegedly paid himself $240,000 with the COVID funds by raising his own rent.

Sanborn owns the Casino through his Win Win Win LLC and he owns the Main Street building where his Concord Casino is located through an entity called The Best Revenge LLC. 

The original lease agreement between Win Win Win and The Best Revenge LLC was for $500 a month. But records showed Sanborn was making payments to himself ranging from $10,000 to $30,000 a month for rent. 

Sanborn claimed the 40-fold rent increase was due to his casino floor space increasing six and a half percent. While it was alleged Sanborn was diverting COVID money to himself through rent, King found Sanborn’s high rental payments to himself started in 2021 before he received any COVID cash.

Sanborn started making payments in November 2021, ranging from $5,000 to $22,000. Those payments were seen as “wildly excessive” by the state.

Sanborn’s casino license was suspended and he was given six months to sell his business. That deadline has been pushed to the end of September as Sanborn continues to fight with the Attorney General’s Office. 

The state has been trying to exert influence over the sale, according to NH Bulletin reporting, while potential buyers have been scared off by the potential criminal charges. Sanborn’s lawyers have accused the state of trying to stop any sale out of spite. 

If Sanborn is unable to sell his business by the Sept. 30 deadline, his gaming license will expire, and he would not have a casino business to sell.

Andy Sanborn, who ran a failed bid for the GOP nomination in the First Congressional District in 2018, has a troubled past in politics. He was investigated for alleged sexual harassment of a Senate intern in 2013, though he maintains it was a misunderstanding about a joke.

When Sanborn first got his casino license in 2018, the harassment incident came back. That time he was investigated for allegedly bribing one of the witnesses. He was cleared of the bribery accusation, but the New Hampshire Lottery Commission was concerned about his suitability to hold a license. According to Commission records, one of the 2018 witnesses told investigators she was warned not to be alone with Sanborn when she started her job in the State House.

Sanborn Craps Out, Loses Casino License

Andy Sanborn’s luck has run out.

After finding Sanborn lied on his application for $844,000 in COVID relief money and then used that cash to pay himself $240,000 and buy sports cars, hearing officer Michael King ordered Sanborn to sell his Concord Casino business.

King is the independent hearing officer who presided over the administrative rules hearing regarding complaints brought by the New Hampshire Lottery Commission against Sanborn, a former GOP state senator and one-time candidate for Congress.

“The misrepresentations on the EIDL [Economic Injury Disaster Loan] application and the subsequent use of the proceeds for expenditures not allowed by that loan constitute ‘conduct by the licensee that undermines the public confidence in charitable gaming,’” King wrote in an order released Thursday.  

Sanborn’s casino license is now suspended for six months, during which time he must find a buyer who can pass the New Hampshire Lottery Commission’s background check. If no suitable buyer is found in that time, the license will be revoked.

Testimony from this month’s hearing and evidence filed in the case revealed Sanborn tried to hide the fact from the federal government that his EIDL loan was going to a casino business. Casinos were not eligible for the EIDL program.

Sanborn and loan consultant Michael Evans listed the business as “Win Win Win LLC” and did not use the trade name “Concord Casino,” King noted in his order. The pair also claimed the business engaged in “miscellaneous services” and not that it was a “charitable gaming facility,” according to King.

When Sanborn started getting the COVID money, he had a little more than $900 in his business bank account, according to King. Within a couple of weeks, Sanborn started buying. According to the evidence, he bought a pair of Porsches, a Ferrari for his wife, state Rep. Laurie Sanborn (R-Bedford), and expensive car parts.

Those purchases would be listed as business equipment in Win Win Win’s financial statements, according to the review.

Further, Sanborn paid himself $240,000 in rent between January and August 2022 for the casino’s Main Street space in Concord. 

Sanborn owns the building housing the casino through a different LLC called The Best Revenge LLC. While the original lease agreement between Win Win Win and The Best Revenge is for a $500 a month lease, Sanborn was making payments to himself ranging from $10,000 to $30,000 a month for rent, according to the evidence. 

Sanborn claimed the 40-fold rent increase was due to his casino floor space increasing six and a half percent. While it was alleged Sanborn was diverting COVID money to himself through rent, King found Sanborn’s high rental payments to himself started in 2021 before he received any COVID cash.

Sanborn started making payments in November 2021, ranging from $5,000 to $22,000. Those payments were seen as “wildly excessive” by the state.

The decision ends Sanborn’s second act as a casino owner. He was in the process of developing a larger casino in Concord when the state alleged he had fraudulently obtained the COVID money.

Sanborn has 15 days to appeal King’s decision, though he might have other legal concerns. The New Hampshire Attorney General’s Office and the United States Attorney’s Office are now looking into Andy and Laurie Sanborn. The pair are the subject of an investigation by the Attorney General’s Public Integrity Unit.

No Decision on Sanborn’s Casino License 

Andy Sanborn still had a casino license Tuesday, though that could change by the end of the month.

After two days of hearings in Concord on allegations that Sanborn fraudulently misused $844,000 in COVID relief money for his Concord Casino, a decision on his gaming license is expected by Dec. 31.

Sanborn denies any wrongdoing after a New Hampshire Lottery Commission audit found several concerning payments in Concord Casino’s 2022 financial statements. The commission oversees New Hampshire’s charitable gaming casinos.

Sanborn fought to delay the hearing, which took place Monday and Tuesday, to give his attorneys adequate time to mount a defense. The hearing was originally set to happen in October.

Lottery Commission auditor Leila McDonough testified about finding the purchase of two Porsches and a Ferrari listed in the statements as business expenses. The Ferrari was reportedly a gift for Sanborn’s wife and business partner, Rep. Laurie Sanborn (R-Bedford). Concord Casino also reported spending tens of thousands of dollars on car parts, again as business expenses. 

According to the financial statement, Sanborn also paid $163,500 for rent between January and August 2022, averaging about $20,000 a month. But, all that money was going to Sanborn.

Sanborn’s casino business is organized as the Win, Win, Win LLC, which pays rent to The Best Revenge LLC, the Sanborn business entity that owns the Main Street building in Concord. According to court records, the 2018 lease agreement on file between Win, Win, Win LLC and The Best Revenge LLC calls for $500 a month in rent, or about $6,000 a year.

Neither Andy Sanborn nor Laurie Sanborn testified during the license hearing. Andy Sanborn is reportedly dealing with a serious illness and was getting medical treatment in Boston on Monday. 

Place Your Bets — Sanborn Casino Hearing Set for Monday

Accused of spending COVID relief money on sports cars, Andy Sanborn is betting he can keep the license for his Concord Casino.

Sanborn, a former GOP state senator, is now set to argue his case to the New Hampshire Lottery Commission at a Monday hearing after weeks of delays. Sanborn sued the state to push back the hearing, originally scheduled for October. He successfully got more time for his lawyers to put together his defense.

Sanborn has denied the accusation that he misused $844,000 in COVID relief funds to buy himself two Porsches and a Ferrari for his wife, state Rep. Laurie Sanborn (R-Bedford.).

In August, the Lottery Commission and New Hampshire Attorney General John Formella publicly declared Sanford unfit to hold a casino license based on the alleged misdeeds uncovered during a regular background investigation.

Sanborn first got the casino license in 2018. He was up for renewal when the alleged fraud was found.

Along with three vehicles allegedly bought with COVID money, the May 2022 audit found Sanborn was paying himself rent for the casino. It is owned through Sanborn’s Win, Win, Win LLC, but the Main Street property in Concord is owned by another Sanborn business, The Best Revenge LLC.

The lease agreement between Best Revenge and Win, Win, Win has the casino pay the property $6,000 a year in rent, paid out at $500 a month. According to the audit, Sanborn wired $163,500 from Win, Win, Win to Best Revenge between January and August 2022 to cover the rent. 

That was more than $20,000 a month for the $500 a month rent. To put it another way, Sanborn appears to have paid himself for more than 27 years of rent in eight months.

According to the audit, Sanborn’s casino was losing money, and the business was down to a little more than $900 available cash before the COVID relief money came through.

Sanborn disputes those facts, claiming the audit looked at the wrong accounts and he had about $150,000 available. While the business lost money in 2020, things had picked up in 2021, he states. Sanborn claims the casino generates $400,000 a month in revenue.

The commission had concerns about Sanborn before the May 2022 audit. Records show his suitability to hold a casino license was being questioned. The commission had worries about his past stint as a state senator, where crude jokes resulted in allegations of sexual harassment in 2013 and an investigation into a bribe to hush up a witness in 2018.

Sanborn was cleared of the bribery accusation. He acknowledged making a crude joke in front of an intern. The exact joke has not been disclosed, but records indicate he was discussing oral sex. One woman told investigators she was warned not to be alone with Sanborn when she started her job in the State House.

The commission was also concerned about the lawsuit brought by creditors in his business bankruptcy filing. Sanborn filed for bankruptcy in 2004 as his business, Brannigan’s Cycleworks, was failing. According to court records, he was sued by creditors who accused him of moving money ahead of the bankruptcy.

After Formella announced the charges, Laurie Sanborn was forced to step down from her role as chair of the new state gambling commission. Formella referred the matter to his office’s Public Integrity Unit as well as to the United States Attorney for the District of New Hampshire.

Sanborn Gets Delay in Casino Corruption Case

You can’t beat the house, so former state Sen. Andy Sanborn is going to court for better odds.

Sanborn, the controversial Bedford Republican and owner of the Concord Casino, filed a lawsuit late last week to stop the New Hampshire Lottery Commission’s hearing into allegations he is unfit to hold a casino license. Sanborn is accused of misusing $844,000 in COVID relief money.

Sanborn claims he did nothing wrong. But court documents show a state audit found he allegedly overpaid himself hundreds of thousands in rent, bought sports cars for himself and his wife, state Rep. Laurie Sanborn (R-Bedford), and used the federal funding to plan a new casino. State officials call it an “airtight case,” according to court records.

Sanborn asked Judge Martin Honigberg in Merrimack Superior Court to set the Lottery Commission hearing for December once his lawyers have had time to go through the evidence. 

“Defendants have violated Plaintiff’s due process rights by refusing to allow Plaintiffs time to prepare for a hearing and refusing to allow an impartial adjudicator to preside over the proceedings,” Sanborn’s lawsuit states.

Sanborn additionally wants Lottery Commission Chair Deborah Douglas removed from the case, claiming she has prejudged his case. He is asking to have an independent presiding officer appointed and to be reimbursed for his attorney fees.

Honigberg granted Sanborn an emergency temporary restraining order delaying the planned Oct. 13 Lottery Commission hearing, but the judge did not make any rulings on the complaint’s merits. The state and Sanborn are now due in the Concord court on Oct. 20 to argue when the commission hearing should occur.

A state audit detected the alleged COVID relief fraud in May 2022. Court records indicate concerns about Sunburn go back further. The previous year’s audit found problems with the casino’s record-keeping and internal financial controls. According to court records, both Laurie and Andy Sanborn had been disciplined and fined by the commission for breaking state casino rules.

Along with two Porsches and a Ferrari allegedly bought with COVID money, the May 2022 audit found Sanborn was paying himself rent for the casino. While the casino is owned through Sanborn’s Win, Win, Win LLC, the Main Street property in Concord is owned by another Sanborn LLC, The Best Revenge LLC.

The lease agreement between Best Revenge and Win, Win, Win has the casino pay the property $6,000 a year in rent, paid out at $500 a month. According to the audit, Sanborn wired $163,500 from Win, Win, Win to Best Revenge between January and August 2022 to cover the rent. 

That was more than $20,000 a month for the $500 a month rent. To put it another way, Sanborn paid himself for more than 27 years of rent in eight months.

According to the audit, Sanborn’s casino was losing money, and the business was down to a little more than $900 available cash before the COVID relief money came through.

Sanborn disputes those facts, claiming the audit looked at the wrong accounts and he had about $150,000 available. He states that while the business lost money in 2020, things had picked up in 2021. Sanborn claims the casino generates $400,000 a month in revenue.

The commission had concerns about Sanborn before the May 2022 audit. Records show his suitability to hold a casino license was being questioned. The commission worried about his stint as a state senator when crude jokes resulted in allegations of sexual harassment in 2013 and an investigation into a bribe to hush up a witness in 2018.

Sanborn was cleared of the bribery accusation and acknowledged making a crude joke in front of an intern. While the exact joke has not been disclosed, records indicate he was discussing oral sex. One woman told investigators she was warned not to be alone with Sanborn when she started her job in the State House.

The commission was also concerned about the lawsuit brought by creditors in his business bankruptcy filing. Sanborn filed for bankruptcy in 2004 as his business, Brannigan’s Cycleworks, was failing. According to court records, he was sued by creditors who accused him of moving money ahead of the bankruptcy.

Sanborn first got the casino license in 2018 and was up for renewal when the alleged fraud was found.

Laurie Sanborn was forced to step down as chair of the new state gambling commission after New Hampshire Attorney General John Formella announced the fraud allegations against her husband in September.

Formella is investigating both Andy and Laurie Sanborn. He has also referred the case to federal prosecutors.

Sanborn Gambles with Casino Hearing

Casino operator Andy Sanborn wants to take his chances in front of the state Lottery Commission, but his odds aren’t looking good.

The former GOP state senator has decided to publicly challenge charges that he stole COVID relief money and used the cash for sports carts and other luxuries.

Sanborn is set to appear before the New Hampshire Lottery Commission on Oct. 3 to appeal Executive Director Charlie McIntyre’s decision that he is too corrupt to own and operate a casino in the Granite State. Concord recently approved a second casino and a microbrewery, which were part of a planned Sanborn development.

But now the scandal-plagued Republican may lose his license to operate a gambling business altogether.

Sanborn is accused of misappropriating $844,000 in pandemic relief tax dollars while operating a casino at his Draft Sports Bar and Grill, which he owns along with his wife, state Rep. Laurie Sanborn (R-Bedford). The allegations against her business partner forced her to give up her position as chair of the state’s new commission reviewing practices in the charitable gaming industry.

McIntyre sent Sanborn a letter on Aug. 31 laying out the findings of the commission’s investigation. According to a statement released by Attorney General John Formella, Sanborn “fraudulently applied for and received at least one Economic Injury Disaster Loan (EIDL), with loan proceeds of $844,000. Further, investigators obtained evidence indicating that after receiving those taxpayer dollars, Mr. Sanborn used them to purchase at least three race cars: two Porsche 987 Cayman S racers for his personal use, and a Ferrari F430 challenge racer as a gift for his wife, Rep. Laurie Sanborn.”

Sanborn also allegedly used COVID money to make 27 years’ worth of prepaid rent payments on another business he owns.

The New Hampshire Attorney General’s Office and the U.S. Attorney’s Office are now looking into Sanborn’s practices. According to Formella’s statement, that includes “a review by the Public Integrity Unit of the actions of all of the individuals and entities involved.” That would presumably include Laurie Sanborn.

Andy Sanborn’s checkered political career includes a bribery investigation after he allegedly made a “crude joke” to a Senate intern in 2013. After the joke was made, the exact nature of which has never been revealed, the intern was given a full-time job in the Senate and an envelope with $200 in cash.

Five years later, an investigation by the Attorney General’s Office did not result in any charges, and Sanborn denied any wrongdoing.

“No one in the room was offended by the joke,” Sanborn said in 2018. “No complaint was filed. Case closed. If that’s news, so be it.”

Sanborn threatened a college student in 2014 via email after the student, one of Sanborn’s constituents, sent an email asking Sanborn to support marijuana legalization. A clearly irked Sanborn called the student “a college freshman who just wants to get high at any cost” and implied he would get the student’s scholarship revoked.

“I’m thinking if I call the [organization you received a scholarship from] and ask their opinion on legalization, they may have a different opinion (not to mention may be asking you for their scholarship money back…).” Sanborn wrote.

Sanborn made a failed bid for Congress in 2018 after serving in the state Senate for eight years. 

Fox, Meet Hen House? Casino Owner Tapped to Chair Charitable Gaming Commission

Is the state’s new commission studying the charitable gaming industry dealing from the bottom of the deck?

The new state budget that took effect in July created the Commission To Study The Effect Of Recent Changes Made To Charitable Gaming Laws, which held its first meeting Monday morning. Eyebrows were raised when the commission picked Rep. Laurie Sanborn (R-Bedford) as its chair, despite her and her husband operating the Concord Casino since 2018.

“I think Laurie’s a lovely person, but I don’t think she’s the right person to lead this commission,” commission member Sen. Lou D’Allesandro (D-Manchester) told NHJournal. Though he could not attend its first meeting, he said he urged other members to take actions that would be viewed as fair and transparent to the public.

“It should not be chaired by a player in the gaming industry,” D’Allesandro said.

Unlike nearly every New Hampshire state government public hearing, the commission’s meeting was not broadcast on streaming video.

Sanborn did not respond to a request for comment.

Commission member Rep. Fred Doucette (R-Salem) nominated Sanborn for the chair. She sees no problem overseeing a commission that is expected to propose changes to the gambling industry, even with her stake in the casino.

“Anything can seem like a conflict of interest depending on how you look at it,” Doucette said.

He said Sanborn brings an insider’s perspective about the casino business to her role, which will be an asset to the commission. Other legislative committees and commissions include members and chairs involved in the industries they oversee, he said.

“We’re a volunteer legislature, and we have to draw from the knowledge and expertise we have at hand,” Doucette said.

Sen. Tim Lang (R-Sanborton), another commission member, told NHJournal that Sanborn declared her conflict before being nominated, as House rules require. Lang said Sanborn got on the commission in the first place because House Speaker Sherman Packard (R-Londonderry) appointed her.

“The speaker knew Laurie’s background and chose to appoint her to the commission,” Lang said.

Packard did not respond to a request for comment.

Other members of the commission:

  • Attorney General John Formella
  • Rep. John Janigian (R-Salem)
  • Rep. Benjamin Baroody (D-Manchester)
  • Rep. Richard Ames (D-Jaffrey)
  • NH Lottery Director Charles McIntyre
  • Aaron Gomes, COO Peninsula Pacific Entertainment
  • Norman Roberge, treasurer of the Concord Lions Club
  • Giovanna Bonilla, director of events and partnerships with the Boston Billiards Club and Casino

New Hampshire allows casinos under its charitable gaming rules which limits how much players can bet and requires casinos to donate 35 percent of the house take to New Hampshire charities. The state keeps 10 percent of the revenue.

The state raised the limit on maximum single-play bets from $10 to $50 in this year’s budget as part of legislation that created the study commission. The commission will look at issues that could impact casino operations and how much charitable groups can expect in donations.

And because state revenues are at stake, some people who attended Monday’s meeting raised questions about who, if anyone, would be advocating on behalf of the taxpayers.

“I saw the casinos and I saw the charities, this is their commission. But where were the taxpayers? ” one person in attendance who asked to speak on background told NHJournal.

The commission is also expected to review the rent charities pay to the operators’ establishments that house them. This rent payment can lower the charity’s take, reducing the amount of charitable donations. Concord Casino is located in The Draft Sports Bar, also owned by the Sanborns. According to records filed with the New Hampshire Secretary of State’s Office, the Draft and Concord Casino are separate business entities.

The commission is also tasked with studying how licenses are issued in the state. The commission could recommend limiting new licenses in municipalities where there are already casinos. Andy Sanborn recently won approval from the city of Concord for a new, large-scale, 43,000-square-foot casino, called Image Casino, to be located at the end of Loudon Road.

Former Rep. Edward “Ned” Gordon (R-Bristol), who still chairs the Legislative Ethics Committee, would not comment on Sanborn’s chairmanship. The Legislative Ethics Committee only gets involved in issues where a complaint is filed.

“The Ethics Committee is not a police force,” he said.

New Hampshire has different ethical standards for different types of officials. For example, someone in the executive branch is barred from overseeing an industry in which they or a spouse has a financial interest. And under rules for the judiciary, judges must recuse themselves from cases in which they or their spouses could benefit.

However, Laurie Sanborn’s leadership of the study commission does not necessarily violate House rules for legislators. The rules require legislators to file a declaration of intent when there is a conflict of interest. Those declarations must state the nature of the conflict and whether or not the lawmaker plans to vote anyway. Declarations can also be made verbally at meetings.

D’Allesandro said the current standard simply is not good enough.

“If your husband owns a casino, or you and your husband own a casino, that’s a conflict of interest,” D’Allesandro said.

Gordon tried and failed to get the conflict of interest rules changed for legislators. He sponsored 2020’s HB 1694, which would have forced legislators to recuse themselves where there is a conflict of interest similar to the Sanborn’s. Gordon’s bill died in the Senate.

The Image Casino proposal is now the subject of a lawsuit. A dozen city residents filed an appeal in the Merrimack Superior Court of the city Planning Board’s approval for the casino. The appeal claims the Planning Board voted to approve the project without proper public notice.

Elizabeth Warren’s 2020 “Tribe” Troubles Don’t End With DNA Debacle

Sen. Elizabeth Warren’s struggles to overcome the impact of her unproven—and likely incorrect—claims of Native American ancestry are well known. This week the New York Times reported that Warren and her close aides are finally realizing what many political observers have long known, that her strategy to use a DNA test to resolve the controversy was a fiasco.

But Warren’s been working on another effort to burnish her Native American bona fides that could be just as problematic: H­­elping the Massachusetts-based Mashpee Wampanoag tribe secure a $1 billion casino project in southeastern Massachusetts. As a result, Warren is making a strange bedfellow of a scandal-plagued, billion-dollar multi-national corporation–exactly the sort of company she has railed against at an outspoken economic populist.

THE MASHPEE CASINO MESS

When the Pilgrims first landed, it was on Wampanoag land.  The tribe counts Crispus Attucks among their members —the first person killed in the Boston Massacre and, therefore, America’s struggle for independence.  The Mashpee Wampanoags have a long history in the story of America’s founding.

What they don’t have, alas, is a long history as a federally-recognized tribe.  They didn’t get that designation until 2007, and only after paying tens of thousands of dollars to corrupt DC lobbyist “Casino Jack” Abramoff, who would eventually go to prison over conspiracy and fraud charges related to his work with various Indian tribes.

Soon after, the Chairman of the Mashpee Wampanoag Tribe who worked with Abramoff, Glenn Marshall, was sentenced to 41 months in prison for crimes he committed “in connection with efforts to secure federal recognition for the Tribe,” according to the FBI.

And this is the tribe that Liz Warren is working so hard to help get into the casino business. She’s pushing legislation to override a federal court ruling and Department of Interior finding that, under federal law, the federal government doesn’t have the power to set aside land for them as “sovereign territory”—which is what they need for prime casino territory.

Their problem is that under the Indian Reorganization Act of 1934, the tribe needed federal recognition when the law was passed to be eligible–a requirement upheld by the US Supreme Court as recently as 2009. The Mashpee Wampanoags were 73 years too late.

But that didn’t stop the Obama administration from taking 321 acres in Mashpee and Taunton, MA into trust in 2015 and declaring it a sovereign reservation.  And with that designation, the Mashpee Wampanoags entered an agreement to build and operate a $1 billion casino complex with the multi-billion-dollar international gaming firm Genting Malaysia Berhad.

 

Artist rendering of proposed Mashpee Wampanoag/Genting casino in Massachusetts

 

How did the Obama administration get around the law? That’s precisely the question residents of Taunton, MA—who weren’t too keen on a casino coming to their small community—started asking. They sued in federal district court, which led to the rulings blocking the Mashpee project.

Enter Elizabeth Warren, who, as recently as 2014, opposed casino gambling entirely. “People need jobs, but gambling can also be a real problem economically for a lot of people,” Warren said. But now she’s stepped up as a champion for the tribe and its casino. And, unavoidably, the scandal-plagued company behind it.

Sen. Warren claims the Mashpee’s cause is a fight for social justice:

“The decision by the Trump Administration to move forward with denying the Mashpee Wampanoag a right to their ancestral homeland and to keep their reservation is an injustice,” Warren said in a statement released to InsideSources. “The Trump Administration’s action is yet another instance of the federal government reneging on a deal with Native Americans, and it underscores why Congress must pass our legislation: so that the Mashpee Wampanoag do not lose their home at the hands of the federal government.”

In fact, the people most desperate to see Warren’s legislation passed are the stockholders of Genting Malaysia Berhad.

“Liz Warren, Champion of Scandal-Plagued Billion-Dollar Corporations!”

Genting has a troubled background, to say the least.  It’s currently at the center of an investigation into a massive kickback scheme that helped bring down the previous Malaysian government. They’re also involved in a billion-dollar lawsuit against Disney and Fox Entertainment over another failed casino project.

Since entering their agreement with the Mashpee Wampanoags, Genting has poured around $440 million in the tribe’s coffers on the promise of a 49.4 percent ownership stake in that Taunton casino.  And now, it appears, the Malaysian company is ready to write the investment off and walk away.

In a financial report issued last week, Genting announced a third-quarter loss, which they said was “related mainly to the impairment loss of RM1,834.3 million [$438 million USD] on… promissory notes issued by the Mashpee Wampanoag Tribe.”

“However, Genting Malaysia Berhad Group continues to work closely with the Tribe on options which include legislation being introduced in the US Congress which, if passed, will entail the US Federal Government to reaffirm the land in trust for the benefit of the Tribe.” [emphasis added]

“This impairment loss can be reversed when the Notes are assessed to be recoverable,” the report says.

And “reversing that impairment loss” is where Elizabeth Warren comes in. Her “Mashpee Wampanoag Tribe Reservation Reaffirmation Act” would overturn court rulings and allow the federal government to create a new reservation.  If the effort succeeds, the Mashpee Wampanoags will be happy. But Genting Malaysia—on the hook for nearly half a billion dollars—will be ecstatic.

Sen. Warren isn’t alone in this fight, of course. Her fellow Massachusetts Democrats, Sen. Ed Markey and Rep. Bill Keating are on board as well, and there is some bipartisan support in Congress.

But “Liz Warren, Champion of Scandal-Plagued Billion-Dollar Corporations!” isn’t exactly the image she has cultivated in American politics. In fact, it stands in stark contrast to her rhetoric of economic populism.  Why would Warren be willing to fight so hard to rescue half a billion dollars of Genting Malaysia’s money?

Warren declined repeated requests from InsideSources for comment, but the thinking is that it’s part of her broader, ongoing efforts to repair the damage done by her mishandling of the Native American issue. CNN reports that Warren “has quietly waged a months-long, behind-the-scenes effort to put ‘Pocahontas’ in the past.”

In March she gave a speech to the National Congress of American Indians defending her claims to Native American ancestry and declaring herself an ally. “For far too long, your story has been pushed aside, to be trotted out only in cartoons and commercials,” Warren said. “Every time someone brings up my family’s story, I’m going to use it to lift up the story of your families and your communities,” she told the group.

Warren insists she’s always been a champion of Native American issues, telling the Boston Globe: “I work on these issues,” said Warren. “I meet with tribal leaders. I attend events. I speak. I’ve appreciated the opportunity to speak out. And I’ve tried to be helpful.”Now that the DNA test stunt has blown up in her face, can Warren afford to step away from a Native American cause, even if the result is a $440 million boon to a troubled multinational corporation?

Perhaps a bigger question is whether the Mashpee Wampanoags still want her?  Warren’s standing as a potential 2020 candidate has steadily fallen in recent weeks, and she hasn’t had a positive news cycle in a long while.

An industry source who is following the issue tells InsideSources: “The tribe and the bill’s supporters have apparently realized she has become a liability to their effort.  The strategy may be to have Warren drop off the existing legislation, or not sign on as a co-sponsor, when it’s reintroduced in the next Congress ”

Even the liberal Boston Globe, long an ally that has worked hard to spin the “Pocahontas” story in Warren’s favor, editorialized this week that she should drop out of the 2020 presidential race altogether.

“Warren missed her moment in 2016, and there’s reason to be skeptical of her prospective candidacy in 2020,” the Globe editorialized. “While Warren is an effective and impactful senator with an important voice nationally, she has become a divisive figure.”

What Liz Warren needs to divide are her efforts for the Mashpee Wampanoag tribe from the international gaming conglomerate that stands to gain so much if she succeeds.