Report: R.I. to Investigate 38 Studios for Illegal Lobbying

FILE- In this May 21, 2012, file photo, former Boston Red Sox pitcher Curt Schilling, center, is followed by members of the media as he departs the Rhode Island Economic Development Corporation headquarters in Providence, R.I. Schilling has dabbled in politics, World War II history and raised millions for Lou Gehrig's disease, but it's a gamble on his video game company 38 studios that is in danger of failing and possibly leaving Rhode Island taxpayers with the tab on a $75 million loan guarantee that lured the firm from Massachusetts in 2010. (AP Photo/Steven Senne, File)
Former Red Sox pitcher Curt Schilling was followed by members of the media as he left the Rhode Island Economic Development Corporation headquarters in Providence in May 2012. (AP Photo/Steven Senne, File)

Rhode Island Secretary of State Ralph Mollis will investigate whether 38 Studios, the video game company founded by former Red Sox pitcher Curt Schilling that went bankrupt in 2012, violated state lobbying laws, reports Providence station WPRI12.

According to the report, 38 Studios did not register any lobbyists with the state while the company was active in Rhode Island, as required by Ocean State law. But a contract uncovered by WRPI showed that 38 Studios had agreed to pay $300,000 per year to an associate of the state’s former House Speaker, Gordon Fox, to work with government agencies and officials.

That document, the report says, swayed Mollis to launch an investigation. Speaking about the contract, Mollis told WRPI: “That doesn’t get any closer to lobbying than the word lobbyist. Yes, that person should have registered.”

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38 Studios received $75 million in taxpayer-guaranteed financing in 2010 but filed for bankruptcy less than two years later, shortly after releasing its first game—leaving the state on the hook for the loan and accrued interest.

Read WPRI’s full report here.