No criminal charges in 38 Studios collapse

Rhode Island says "no provable criminal violations" in Kingdoms of Amalur company's downfall, but civil litigation still outstanding

There will be no criminal charges laid in connection to the 2012 collapse of 38 Studios. The Rhode Island State Police and Office of the Attorney General on Friday announced that "there were no provable criminal violations of the Rhode Island General laws in connection with the funding of 38 Studios, the disbursement of funds to 38 Studios, and by 38 Studios to vendors."

Rhode Island lured the Massachusetts-based developer to the state in 2010 with $75 million in loan guarantees as part of a job creation program. When the studio went under less than two years later, it left the state liable for more than $100 million in principal and interest.

The possibility of federal charges was taken off the table just months after the studio went under, as a US Attorney determined federal laws (such as providing false information to the banks that loaned the company money) had not been violated.

Even with state and federal authorities choosing not to bring charges, this isn't the end of the legal fallout from the studio's failure. There is still civil litigation winding its way through the courts.

As for why it's taken so much longer for the state to determine whether or not to bring charges, authorities said the criminal investigation had been "largely completed" for some time, but investigators wanted to review depositions from the ongoing civil case that were just released last September.

"After a time consuming and extensive review, it was determined that no criminal conduct was disclosed through those documents," the police said.

More stories

Ex-38 Studios execs to settle suit for $2.5 million

Curt Schilling, three others admit no wrongdoing in proposed end to Rhode Island lawsuit; money would come from insurance

By Brendan Sinclair

SEC brings fraud charges for 38 Studios collapse

Wells Fargo Securities and Rhode Island state agency accused of defrauding investors in loan for Kingdoms of Amalur developer

By Brendan Sinclair

Latest comments

Sign in to contribute

Need an account? Register now.