digital media

Deloitte to audit 38 Studios’ books

Posted 5/30/12

(Updated May 31, 12:00p.m.)

PROVIDENCE – The R.I. Economic Development Corporation has commissioned a forensic audit of 38 Studios LLC to learn how Curt Schilling’s beleaguered video game company ran out of money and how much the former pitcher has put into it, Gov. Lincoln D. Chafee said Wednesday.

Deloitte LLP was hired to perform the audit and started work Wednesday, joining Braver PC, which has already done one review of 38 Studios and confirmed that the company has spent all $49.5 million it received from the $75 million loan guaranteed by the state in 2010.

Chafee said 38 Studios will pay for the new audit under the terms of the loan guarantee, although he said he didn’t know how much the audit would cost or how the company would pay for it.

38 Studios remains in default of the loan guarantee for failing to notify the state adequately when it let go all its workers last Thursday.

Schilling has said he stands to lose $50 million if 38 Studios goes down, but Chafee countered that the state has not been able to confirm how much of his personal fortune he invested or whether he has paid himself back with any proceeds of the state-guaranteed loan.

Chafee also announced Wednesday that Stephen Lane, founder of medical device firm Ximedica, has resigned from the EDC Board of Directors.

Lane is the sixth member of the 13-member Board, chaired by Chafee, to either step down or not be reappointed since 38 Studios faltered and he was the last remaining member to have voted in favor of the $75 million loan guarantee.

Chafee declined to say whether he asked Lane to step down, but has described having anyone who voted for the deal on the board a “conflict.”

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