Curt Schilling being sued by RI
On Thursday, the State of Rhode Island filed charges against former Red Sox ace Curt Schilling, as well as several of his business associates at his failed video game studio, 38 Studios. The state alleges that Schilling and co. fraudulently lead the state to lend them $75 million dollars to the company that filed for bankruptcy four months ago.
According to RI Governor Lincoln Chaffee, the decision to press charges was made in an attempt to settle some of the state’s debts.
“My message to Rhode Islanders is this: I know that you work hard for your paychecks, and for your tax dollars to be squandered is unacceptable,” Chaffee said in a statement.
According to ESPN, when 38 Studios declared bankruptcy, it left Rhode Island to pick up a $100 million tab. The state also claims that key 38 officials knew that the company would run out of money by 2012, but hid those details so that the loan would be approved.
In addition to the allegations, the suit asks Shilling and others associated with the studio to pay back triple the damages. It claims that studio officials and former Economic Development Corporation Executive Director Keith Stokes intentionally hid information that signaled that the company was unstable.
If Rhode Island is successful in its suit, this would definitely be an economic disaster for Schilling, who already may have lost important personal mementos like the infamous bloody sock. It’s just another lesson in these economic times that it’s extremely important to make smart business decisions.