Key Players in 38 Studios Deal Get Subpoenas This Week

June 14, 2012 -

Rhode Island state and Federal officials have begun to dig into the affairs of Curt Schilling's 38 Studios, who filed for bankruptcy earlier this month. According to Gamasutra, information related to the loans given by the state to 38 Studios is about to be picked apart. Earlier this month the Rhode Island State Police, the Rhode Island Attorney General's office, the FBI, and the U.S. Attorney's Office announced that they would work together in a joint investigation of the company.

Both the Rhode Island Economic Development Corp. (who were in charge of the $75 million loan guarantee) and the Bank Rhode Island have received subpoenas to testify about the deal. Bank RI is being called in for loans it gave two companies controlled by Providence tax credit broker Michael Corso, who used the state tax credits he agreed to buy from 38 Studios as collateral. Apparently 38 Studios never actually received these credits. The state will grill both of these entities to find out why 38 Studios failed to pay its staff, and why some employees were left with second mortgages on homes they purchased.

We will have more on this story as it develops.

Source: Gamasutra


 
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