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


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┬ásaying, “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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