No federal criminal charges will be brought in the case of the video game company owned by former Red Sox pitcher Curt Schilling, which received a $75 million state loan guarantee before going belly up, the US Attorney’s office in Rhode Island said yesterday. A state probe continues.
Jim Martin, a spokesman for US Attorney Peter Neronha, said the office conducted a review of 38 Studios to see if any federal laws were broken, including bank fraud.
“No further federal action is planned at this time,” he said.
The company was lured to Providence from Massachusetts in 2010 by the $75 million state loan guarantee and promised to create hundreds of jobs.
Instead, it suddenly collapsed and laid off all its workers in May. At one point, the company was burning through about $5 million per month.
The company’s failure left the state likely on the hook for more than $100 million, including the $75 million in bonds it floated.