Schilling’s 38 Studios faces more scrutiny
State and federal law enforcement agencies stepped up their investigation this week into Curt Schilling’s bankrupt video game company.
Both the Rhode Island Economic Development Corp. and the Bank Rhode Island, a unit of Brookline Bancorp, confirmed Wednesday that they received subpoenas regarding Schilling’s company, 38 Studios LLC, which shut down operations last month and filed for Chapter 7 bankruptcy last week.
The economic development agency handled the $75 million loan guarantee Rhode Island used to lure the company from Massachusetts to Providence last year. Bank Rhode Island made loans to two companies controlled by Michael Corso, a Providence tax credit broker who used state tax credits he agreed to buy from 38 Studios as collateral. 38 Studios applied for, but never received the credits.
A spokesman for the economic development agency, Judy Chong, said the subpoena came from the US Attorney’s office, while a bank spokeswoman wasn’t sure who sent the request.
The Rhode Island state police, state attorney general’s office, FBI, and US attorney’s office launched a joint criminal investigation to the company a week ago, amid complaints that company failed to pay employees and sold tax credits it had not yet received. Investigators are also looking at how the company used the loan proceeds.
Schilling and the company’s outside public relations firm could not be reached for comment on Wednesday.