by Guy Page

The former publisher of a daily newspaper that once served Springfield and other Connecticut River Valley towns has been indicted on federal fraud charges, according to prosecutors.

Jay Lucas, the owner of the now-defunct Eagle Times, published in Claremont, NH, was indicted by a New York grand jury and arrested Thursday in New Hampshire. Federal officials allege Lucas defrauded investors out of millions of dollars while promoting what he described as health and wellness ventures.

“Jay Lucas promised investors he would use their hard-earned money to grow wellness businesses, with everyone sharing in the profits,” said Jay Clayton, U.S. Attorney for the Southern District of New York. “Instead, Lucas allegedly lied, frittered away investor money on personal vanity projects, and betrayed his obligations to his investors.” In particular, Clayton mentioned “a vanity newspaper project in his hometown” – the Eagle, which was already in significant financial trouble when Lucas bought it in 2022.

Lucas is expected to appear Friday in U.S. District Court in Concord, New Hampshire.

According to a December 18 news report by Damien Fisher in InDepthNH.org, Lucas purchased the Eagle Times in 2022, publicly declaring that the newspaper would focus on positive and uplifting stories. He described the acquisition as part of his “Sunshine Initiative,” a loosely defined effort he said was intended to revitalize the local area through optimism and happiness. Prosecutors allege Lucas did not disclose that the newspaper was purchased using investor funds.

According to the indictment, Lucas raised millions of dollars from investors who believed their money would be used to support startup health and wellness companies. Instead, prosecutors allege, the funds were diverted to cover personal expenses, including alimony and rent, to finance the purchase of the Eagle Times, and to pay political consultants.

“Jay Lucas allegedly systematically misappropriated millions of dollars from his investors, diverting their money to personal expenses, repayments to other investors, and his wife’s business,” said Christopher Raia, FBI assistant director in charge. “As the fund’s managing partner, Lucas’s alleged deceit not only failed to sustain his company’s operations but also betrayed the trust of his clients and employees.”

Prosecutors further allege that Lucas used investor money to bolster a luxury skincare company, Immunocologie, owned by his wife, Karen Lucas.

InDepthNH reports that Lucas has been a longtime figure in New Hampshire Republican politics. He self-funded an unsuccessful 1998 campaign for governor against then-Gov. Jeanne Shaheen, now a U.S. senator, and later served as treasurer of the New Hampshire Republican Party and as a major GOP donor.

The Eagle Times, which served communities in Vermont and New Hampshire along the Connecticut River Valley, later ceased publication. The federal case against Lucas remains pending, and the charges are allegations. Lucas is presumed innocent unless and until proven guilty in court.