- Associated Press - Friday, February 3, 2017

PROVIDENCE, R.I. (AP) - Rhode Island’s attorney general has closed a criminal investigation into 38 Studios, after the state agreed to settle with the final defendant in its lawsuit over the failed $75 million deal with the company started by former Boston Red Sox pitcher Curt Schilling.

Attorney General Peter Kilmartin and the State Police announced in July no criminal charges would be filed after a yearslong investigation. But Kilmartin announced Friday the dormant investigation was closed, saying he had no other choice because the State Police was not willing to revive it.

Kilmartin said he had planned to reactivate the case under certain circumstances, including the resolution of the civil litigation. He said he presented the idea to new State Police Col. Ann Assumpico but she told him she wouldn’t commit further resources.

Assumpico said in a statement Friday that she considers the case closed but she would reopen it if presented with new evidence or leads. She said Kilmartin’s office didn’t present persuasive enough information to reopen the case at this time.

Schilling’s video game company moved from Massachusetts to Rhode Island in 2010 in exchange for a $75 million state loan guarantee, then went bankrupt less than two years later.

The lawsuit was filed in 2012, and the state has since settled its claims against Schilling and others involved with the deal.

Wednesday, the state Commerce Corporation said it has agreed to a $16 million settlement with Dallas-based Hilltop Securities Inc., the state’s financial adviser on the deal and remaining defendant in the civil lawsuit. Hilltop was formerly the First Southwest Co.

If a judge approves the agreement, the combined settlements will total about $61 million.

Schilling has said his company failed because it didn’t raise enough money, not because he did anything malicious or illegal. He also has faulted Rhode Island politicians for giving him a loan guarantee in the first place.

Democratic Gov. Gina Raimondo, state lawmakers and others have called for the release of documents in the criminal investigation. Law enforcement officials declined to do so as long as the investigation remained open.

Kilmartin said Friday he remained concerned about releasing investigative records regarding an investigation that hasn’t resulted in charges and for which the statute of limitations hasn’t expired.

Republican House Minority Leader Patricia Morgan said Kilmartin was making excuses to not “tell us all the particulars, all the players, what they did and how we got into this really bad deal.”

“We need to lift up that rock and let the critters out,” she said.


Associated Press writer Matt O’Brien in Providence contributed to this report.

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