Veil to be Lifted on 38 Studios Deal? House Minority Members Say It's Time

PROVIDENCE, RI—Statehouse Republicans want to inspect all the documents related to 38 Studios, former Red Sox pitcher Curt Schilling's failed video game company.

In 2010, the state of Rhode Island offered an unprecedented $75 million financing package to attract Curt Schilling’s video game company to Rhode Island and two years later, Schilling’s company, 38 Studios went bankrupt. It caused hundreds of people to lose their jobs and put the state’s credit rating at risk.

Rhode Island was on the hook for $88 million in bonds.

Investigations were called for and conducted, but the documents stayed under lock and key because the case was pending, officials said.

But earlier today, the Rhode Island Commerce Corporation announced it expects to recoup almost 70 percent of the $88 million bond obligation the state must pay. That's because Commerce reached a deal with the last holdout. Hilltop Securities Inc., formerly First Southwest Company, has agreed to pay Rhode Island $16 million. That deal is contingent on the court's approval, though.

Related Story: 38 Studios Settlement Reached: State Recoups More Losses from Curt Schilling's Company

When that approval is in hand, the Minority Caucus want Gov. Gina Raimondo and Rhode Island Atty. Gen. Peter F. Kilmartin to release the documents.

“Now that Hilltop Securities, the last defendant in case, has agreed to a settlement, it is imperative the Governor and Attorney General keep their promise to release all documents related to 38 Studios to the public,” said Minority Whip Blake Filippi. “To make sure a devastating economic disaster like 38 Studios never happens again, legislators and the public need access to all documents related to the investigation, in order to understand exactly what happened, who knew what and when.”

Raimondo indicated today she is pleased about the financial settlement but also wants answers about how the 38 Studios debacle ever happened. It isn't over, she said, until the public has all the information that's known about the case. She will petition the court to release all the materials connected with the Grand Jury's investigation, she said.

Last week, Representative Bob Quattrocchi (R-District 41 Scituate/Cranston) introduced House Resolution No. 5190 requesting that the Rhode Island Attorney General and the Rhode Island State Police release all reports related to 38 Studios, to the public. The Resolution has been referred to the House Judiciary Committee.

Representative Quattrocchi stated, “I believe it is the right of the people of the state of Rhode Island, who paid for the investigation, which cost millions of dollars, to have the opportunity to review all the related reports and documents.”

According to Rep. Price, “I am looking forward to this case closing, so we can make right on our promise to release the records to the people. We’ve all been waiting for this, for a really long time.”

The investigation by the State Police and Rhode Island Attorney General Peter F. Kilmartin included interviews with over 140 people and a review of hundreds of documents.

House Minority Caucus members include House Minority Leader Patricia Morgan (R-District 26 Coventry, Warwick, West Warwick), Senior Deputy Minority Leader Anthony Giarrusso (R-District 30 East Greenwich, West Greenwich), House Minority Whip Blake Filippi (R-District 36 Charlestown, South Kingstown, Westerly, New Shoreham), Representatives Brian C. Newberry (R-District 48 N. Smithfield, Burrillville), Sherry Roberts (R-District 29 Coventry, West Greenwich), Mike Chippendale (R-District 40 Foster, Glocester, Coventry), Representative Ken Mendonça, (R-District 72 Middletown, Portsmouth), Robert Lancia (R-District 16 Cranston), Bob Quattrocchi (R-District 41 Scituate, Cranston), Justin Price (R-District 39 Exeter, Hopkinton, Richmond) and Robert Nardolillo III (R-District 28 Coventry).