Raimondo To Next Week Seek Release Of Investigative Materials From 38 Studios Case

Feb 10, 2017

Raimondo during a past Statehouse news conference.
Credit Ian Donnis/File Photo / RIPR

Following the approval of the final settlement in the state's lawsuit over 38 Studios, Governor Gina Raimondo said Friday she will file a Superior Court petition early next week seeking the release of grand jury materials from a related investigation.

Meanwhile, the governor's office said State Police Col. Ann Assumpico has directed her department to review and release as soon as possible non-grand jury-related materials from Rhode Island's criminal probe of 38 Studios.

"Rhode Islanders were hurt by 38 Studios. I've fought hard to recover as much taxpayer money as possible and am pleased that Judge Silverstein has approved our last settlement," Raimondo said in a statement. "Now that the civil case and criminal case is closed, we should make all the documents available to the public and give the people of our state closure."

Investigators announced last year that a criminal probe into 38 Studios produced no charges.
On Friday morning, Superior Court Judge Michael Silverstein approved a $16 million settlement with the last remaining defendant in the state's 38 Studios lawsuit, Hilltop Securities, formerly known as First Southwest Company, which served the state as a financial adviser.

The settlement brings to $61 million -- almost 70 percent of the $88 million in moral obligations for the state. The outstanding debt stands at about $12.5 million.

38 Studios was lured to Rhode Island in 2010 with a state-backed $75 million loan guarantee. The company owned by former Red Sox pitcher Curt Schilling went bankrupt two years later.

As a candidate for governor in 2014, Raimondo said she would support an independent probe of 38 Studios. She has changed her position since then, saying that an outside investigation would be too costly after taxpayers have already lost millions due to 38 Studios.

In a statement, her office said, "Governor Raimondo has long said that she believes Rhode Islanders have a right to know what happened in 38 Studios and announced months ago that she would petition the court to release the grand jury documents as soon as the civil case was complete."