(Updated, 5:12 p.m.)
The Securities and Exchange Commission on Monday filed charges against the R.I. Economic Development Corp. and its bond underwriter Wells Fargo Securities, alleging fraud that stems from a 2010 municipal bond offering to finance the now-defunct video game company 38 Studios LLC.
Scrawled on a piece of lined paper buried deep among thousands of court documents is a handwritten note:
"OK to be bold, but this is as aggressive as we've done."
The word "aggressive" is underlined and there's an arrow pointing at …
The R.I. Economic Development Corp. is urging the R.I. Superior Court to approve a proposed settlement in the ongoing 38 Studios LLC lawsuit, despite a recent legal objection that the state is calling “inflammatory.”
If the state's public officials want to make a real difference in Rhode Island's future, they should spend less time on getting to the bottom of the 38 Studios mess and more, a lot more, on the looming public-finance meltdown over unfunded liabilities for local pensions and other post-employment benefits (also known as OPEBs).
(Updated 5:18 p.m.)
Officials said there will be no criminal charges filed as a result of an investigation into 38 Studios LLC. A press conference was held Friday afternoon at state police headquarters to report findings of the criminal investigation into the failed video game venture by former Boston Red Sox pitcher Curt Schilling that left taxpayers on the hook for a $75 million loan guarantee.