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U.S. attorney drops 38 Studios investigation

The SportsXchange

An investigation of potential criminal wrongdoing in the fall of Curt Schilling's video-game company 38 Studios has been dropped, the U.S. Attorney's office in Rhode Island said Friday.

"This office conducted a very narrowly focused review for potential violations of various federal statutes, including bank fraud," Jim Martin, a spokesman for U.S. Attorney Peter Neronha, told the Providence Journal. "That review is concluded and there will be no further review."

The investigation began after a previous Providence Journal report that said the Bank Rhode Island had loaned $8.5 million earlier this year to help the now-bankrupt company stay in business. Subpoenas were issued to the bank and the Rhode Island Economic Development Corp., which sold $75 million in taxpayer-backed bonds to lure 38 Studios to Providence in 2010.
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