Documents shed light on start of disastrous 38 Studios deal

Documents shed light on start of disastrous 38 Studios deal photo Documents shed light on start of disastrous 38 Studios deal

Dozens of people were deposed, but key figures including Schilling were not.



The following are seven significant findings from the thousands of 38 Studios documents that raise serious questions about a deal that was fundamentally flawed and executed in a perverse manner.

Numerous once-secret documents support a narrative that’s been emerging since 38 Studios collapsed in 2012: that the deal was orchestrated by Fox and his friends, in particular attorney Michael Corso, who did work for 38 Studios, and former House Finance Chairman Steven Costantino, along with EDC officials, said John Marion, executive director of Common Cause Rhode Island.

Curt Schilling, chief executive officer of 38 Studios LLC and a former Boston Red Sox pitcher, speaks during an interview in New York, U.S., on Monday, February 13, 2012. Fox has since pleaded guilty and been sent to prison for unrelated corruption charges.

Most notably the man at the center of the debacle, Curt Schilling, was not deposed. But he was asked whether he met with 38 Studios representatives on July 21, 2009, indicating the deal may have been in the works months before originally acknowledged. The lack of cooperation by Corso and Fox, who invoked their Fifth Amendment rights on every question during their respective depositions, leaves a lot of questions unanswered, he said. Carcieri said he did not know of Wells Fargo billing for their services, in addition to raising capital for 38 Studios, but said that he wouldn’t be surprised.

Raimondo also said she wants to see the civil suit come to a close before pursuing an independent investigation into the 38 Studios deal. The legislation was introduced in May 2010 and signed into law in June 2010. At the time, Fox was House majority leader.

The Rhode Island Economic Development Corp., which lured 38 Studios to Rhode Island from Massachusetts, sued to recover the money taxpayers lost. “I thought I was the one that found, you know, 38 Studios as a possible – I had no idea there were other conversations that preceded that, none whatsoever”, Carcieri replied.

Saul himself sought a job with 38 Studios in December 2010, about six weeks after the financing deal for the company was finalized.

– Corso was also asked in his deposition whether he received more than $2 million in fees in connection with the company’s move to Rhode Island and the EDC loan transaction, and whether he received an equity stake in 38 Studios.

“At this point my focus is on pursuing the litigation”, she said.

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