Rhode Island’s State Police Superintendent and Attorney General brought their investigation to a close, saying “the quantity and quality of the evidence of any criminal activity fell short of what would be necessary to prove any allegation beyond a reasonable doubt and as such the Rules of Professional Conduct precluded even offering a criminal charge for grand jury consideration.”
The company went bankrupt in 2012 after accepting $75 million in loans from the state of Rhode Island. Its flagship MMORPG, codenamed Project Copernicus, never launched. Local politicians at the time campaigned to turn the bankruptcy into a national fiasco, accusing the state government of colluding with the company to swindle taxpayers.
According to the Boston Globe, the SEC’s fraud investigation continues and could influence future charges brought against those involved.