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Curt Schilling’s failed 38 Studios will not face federal charges

1 Oct 2012  by   Peter Parrish
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The repercussions from the collapse of Curt Schilling’s 38 Studios in Rhode Island continue to rumble on (not least for its unfortunate former employees), but one matter has now been settled. A spokesman for U.S. Attorney Peter Neronha has told the Associated Press that no further federal action is being taken against the defunct studio. TheĀ U.S. Attorney’s office had conducted a “narrow, focused” review, to see if 38 Studios had broken any federal laws (including bank fraud).

Rhode Island State Police are still conducting a similar investigation, looking into whether 38 Studios broke any state laws. “We follow all leads that are presented to us,” says police head Col. Steven O’Donnell.

The Governor of Rhode Island, Lincoln Chafee, said he would not comment on the closure of the federal investigation while the state investigation was still ongoing.

38 Studios was enticed to Rhode Island in 2010 with the promise of a $75 million USD loan guaranteed by the state. Reported expenditure of $5 million USD per month and a lack of progress on the MMO dubbed ‘Copernicus’ (pictured) resulted in the studio’s sudden closure and bankruptcy in May 2012.

Source: Business Week

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