Lawmaker Wants Schilling, Others to Testify About 38 Studios
A Rhode Island lawmaker has sent letters to 38 Studios founder Curt Schilling and several other people involved with the bankrupt company, inviting them to testify before the state’s House Oversight Committee.
According to a report from the Daily Journal, Congresswoman Karen MacBeth, a member of the committee, sent the letters asking for testimony from Schilling and six other people from 38 Studios. The Rhode Island House Oversight Committee is investigating the $75 million loan from Rhode Island to 38 Studios, issued in 2010, that brought the Kingdoms of Amalur: Reckoning developer to the state, which 38 Studios then failed to pay back.
The collapse of the deal and 38 Studios has left Rhode Island owing some $90 million, the Daily Journal reports.
MacBeth’s letters also went to various people in the Rhode Island government involved in the deal. They include Kieth Stokes, the executive director of the state’s Economic Development Corp., which made the deal with 38 Studios, and his then-deputy, Michael Saul; EDC employee Sean Esten, who questioned making the loan in the first place; Steven Costantino, a Rhode Island lawmaker who sponsored the bill that created the loan program in the first place, along with co-sponsor and former Rep. Jon Brien; and attorney Michael Corso.
Schilling, Stokes and Saul all are defendants in a lawsuit brought forward by the Economic Development Corp., along with 11 other people. The suit claims the company was already suffering financially when it accepted the money and that the defendants purposely concealed that information in order to make the deal happen, essentially bilking the state out of its $75 million.
For their part, Schilling and others from 38 Studios have blamed their company’s eventual failure on the actions of the state. The Daily Journal reported that it had not reached Schilling’s attorney, Sarah Heaton Concannon, for comment, but that she had previously called the accusations against him “baseless.”
Though sending letters asking for cooperation might seem like a light touch, MacBeth also considered issuing subpoenas to the witnesses, the Daily Journal report states. She backed off that plan and decided to ask for testimony instead, but MacBeth said she wouldn’t be above compelling the seven people to appear before the committee in May if it comes to that.