The program was intended to provide economic relief to New Hampshire small businesses experiencing disruptions due to COVID-19.

By falsifying the casino’s gross receipts, Sanborn and his company allegedly received $188,474 more than he should have, according to the attorney general’s office.

Sanborn was charged with theft by deception, which is a Class A misdemeanor under New Hampshire law. Class A felonies can result in a sentence of seven and a half years to fifteen years in New Hampshire State Prison and a $4,000 fine.

According to the Public Prosecution Service, the charges are part of an ongoing criminal investigation.

In a statement, an attorney representing Sanborn called the arrest “an attempt to sabotage Win Win Win sales.” Sanborn was forced by the state to sell his casino after facing fraud allegations that led to the suspension of his gambling license in December. He initially planned to sell the casino in June, but he has repeatedly requested extensions and accused the state of trying to derail the deal.

“We are disappointed but not surprised,” said Mark T. Knights, a partner at Nixon Peabody, of Sanborn’s arrest on what he called the eve of a sale to a qualified buyer. Knights said the attorney general violated Sanborn’s constitutional rights and his office is currently facing possible sanctions for prosecutorial misconduct.

Sanborn’s attorneys filed a lawsuit against the attorney general’s office in July, including allegations that the office improperly handled confidential data it obtained in an investigation, the New Hampshire Bulletin previously reported.

“We remain confident that the New Hampshire judiciary will continue to deliver justice and hold the AG accountable,” Knights said.

This story has been updated with comment from an attorney representing Sanborn.

Amanda Gokee can be reached at [email protected]. Follow her @amanda_gokee.