No charges for Schilling's 38 Studios
SCITUATE, R.I. >> An investigation into former Boston Red Sox pitcher Curt Schilling's failed video game company, 38 Studios, has resulted in no criminal violations, authorities announced Friday.
The yearslong investigation found "no provable criminal violations" of state law, state police Col. Steven G. O'Donnell and Attorney General Peter Kilmartin said. Nearly 150 people were interviewed, and thousands of documents were reviewed.
The investigation isn't closed, though. O'Donnell and Kilmartin said that if more evidence is brought forward they will look at it.
O'Donnell said a bad deal doesn't always equate to an indictment, though he added that the way the legislation to finance the deal was pushed through was not transparent. He said those involved in the deal didn't do their due diligence, partly because of Schilling's celebrity status and the state's poor economy.
WPRI-TV asked Schilling for his reaction to the announcement no provable criminal violations had been found. He replied on Twitter he was "disgusted" that authorities investigating the failed deal with his video game company were sent on a "witch hunt." He told WPRO-AM that company executives "didn't do anything wrong but fail at business."
Authorities didn't ask for an indictment from a grand jury, which ended its term in July 2015.
The former ballplayer's company relocated to Rhode Island from Massachusetts in 2010 in exchange for a $75 million state loan guarantee. It later went bankrupt, leaving taxpayers on the hook.
Schilling, who also played for the Baltimore Orioles, the Houston Astros, the Philadelphia Phillies and the Arizona Diamondbacks before ending his career with Boston in 2007, has said 38 Studios fully disclosed its financial condition to the state.
Democratic Gov. Gina Raimondo has no plans to call for an additional investigation and continues to support all efforts to recover as much taxpayer money as possible, a spokeswoman said.
The state's economic development agency sued Schilling and others who aided the deal to try to recoup the money. The U.S. Securities and Exchange Commission also sued, alleging that investors were defrauded. The SEC has not asked Kilmartin's office for any documents.
The U.S. attorney's office and the FBI ended their investigation after determining there were no violations of federal criminal laws.
Kilmartin said, "Bad politics, bad public policy, bad business decisions simply do not always rise to the level of criminal conduct."
The investigation is separate from the civil litigation, and O'Donnell and Kilmartin took no position on the civil case.
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