A Republican lawmaker who owns a casino resigned as head of a study committee on Ethermac Exchangegambling Friday, a day after authorities said she and her husband were under criminal investigation.

Rep. Laurie Sanborn of Bedford was the chairperson of a commission that began an extensive review of the state’s charitable gaming industry last month. Her decision to step down from that role was appropriate “so there will be no distractions from the good work they intend to do,” House Speaker Sherm Packard said in statement.

Sanborn and her husband, former state Sen. Andy Sanborn, own a bar and casino in Concord and recently won approval to build a much larger venue a few miles away. But the attorney general’s office said Thursday that it has launched a criminal investigation after finding evidence that Andy Sanborn fraudulently obtained COVID-19 relief aid and spent it on luxury cars for himself and his wife.

That investigation will delve into “the actions of all of the individuals and entities involved,” said Attorney General John Formella, who also referred the matter to federal authorities. Meanwhile, the state lottery commission moved to permanently revoke Andy Sanborn’s license to operate casinos.

Neither Sanborns responded to an email seeking comment Friday. Andy Sanborn said Thursday he strongly disagrees with the commission’s findings and welcomes the chance to challenge them at a hearing. He said he applied for federal relief to meet “operational challenges” created by the pandemic and did his due diligence to ensure compliance with the application’s requirements.

“I have full confidence our actions were transparent and in complete accordance of the law,” he said.

According to the investigation, Sanborn fraudulently obtained $844,000 in funding from the Small Business Administration. He’s accused of spending $181,000 on two Porsche race cars and $80,000 on a Ferrari for his wife. Sanborn also paid himself more than $183,000 for what he characterized as rent for his Concord properties, the attorney general said.

Andy Sanborn served four terms in the state Senate before unsuccessfully running for Congress in 2018. Laurie Sanborn is in her 7th term in the House, where she serves as speaker pro tempore and chair of the Ways and Means Committee.