The SEC has charged Rhode Island corps over alleged 38 Studios fraud

    
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WHAT THE NOW

It’s been several years since 38 Studios collapsed in a pile of debt without an MMO to show for all of it, but the legal train has not yet finished rolling. The Securities and Exchange Commission announced today that it is charging the Rhode Island Commerce Corporation and Wells Fargo with defrauding investors, claiming that both organizations knew that 38 Studios required more money to finish a game but did not adequately inform would-be investors.

Three of the executives involved in the deal were also charged in the suit; two have already settled out of court, resulting in a fine and a ban from participating in further municipal securities offerings. A local news station reported Curt Schilling as saying, “I’m not involved in ANY of the crooked crap, never was.”

Whether or not these charges will stick remains to be seen; it certainly indicates that there’s more legal pointing and blaming to be done even four years after the fact.

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scratches16
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scratches16

TIL: The SEC still has enough funding to actually do things. Holy shit :o

wjowski
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wjowski

Oyjord 
 Being a shitbag doesn’t automatically make you guilty of every crime ever.  That said Schilling was the head and oublic face of the company.  I find it hard to believe his hands are totally clean.

thegirlwiththehair
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thegirlwiththehair

Grimmtooth

uh, no.  What this is actually about is that RICC&WF agreed to give $75M, knew that 38S needed 75M, then only actually gave them 50 knowing full well it would cause the studio to fail without additional funding… then proceed to not tell the other shareholders about withholding 33% of the loan.

The crux of the charges is that they created a situation where the studio was likely to fail while at the same time not properly informing the other shareholders of this fact (thus: securities fraud)

thegirlwiththehair
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thegirlwiththehair

Grimmtooth

uh, no.  What this is actually about is that RICC&WF agreed to give $75M, knew that 38S needed 75M, then only actually gave them 50 knowing full well it would cause the studio to fail without additional funding… then proceed to not tell the other shareholders about withholding 33% of the loan.

The crux of the charges is that they created a situation where the studio was likely to fail while at the same time not properly informing the other shareholders of this fact (thus: securities fraud)

Estranged
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Estranged

Armsbend Estranged Greaterdivinity tobascodagama Can’t add more, but a like.

Grimmtooth
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Grimmtooth

The SEC brought charges against RICC & Wells Fargo not Schilling or 38 Studios rights holders. 
This means that Schilling & crew should never been given the loans in the first place without a proper plan to be fully funded.

Given this much lag in the system this means we are about 2 years out from being SEC charges being brought against some of the more shady crowdfunding actors.

Qarran
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Qarran

Armsbend Qarran  You don’t know what you are talking about.  Lol.  Many claim to know and think they know what goes on in many government agencies but the truth is you don’t.  And btw, they have also saved you many more times that you could possibly know.

Sorenthaz
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Sorenthaz

Not really surprised at this point as politicians basically have been using the deal as grounds for political games for years.

Armsbend
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Armsbend

Qarran “They are slow getting to the party because they are very diligent. ”

Laugh my fucking ass off.  The SEC diligent.  The SEC has sold this country down the river.

Armsbend
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Armsbend

Qarran “They are slow getting to the party because they are very diligent. ”

Laugh my fucking ass off.  The SEC diligent.  The SEC has sold this country down the river.