Schilling asked to testify in review of 38 Studios deal - News, Weather and Classifieds for Southern New England

Schilling asked to testify in review of 38 Studios deal

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Curt Schilling Curt Schilling
PROVIDENCE -

The Rhode Island House Oversight Committee has asked former Red Sox pitcher Curt Schilling to testify as it continues its review of the deal that lured his now-bankrupt video game company to the state with a $75 million loan guarantee.

Chairwoman Karen MacBeth, D-Cumberland, said Wednesday that letters went out last week to six other individuals she hopes will come before the panel in May. The committee has not yet received any responses, according to House spokesman Larry Berman.

The committee is reviewing thousands of pages of documents related to the Economic Development Corp.'s 2010 approval of the loan guarantee for 38 Studios. The company moved to Providence from Massachusetts, then went bankrupt. Rhode Island is now on the hook for some $90 million related to the deal.

The letters from MacBeth went to former EDC Executive Director Keith Stokes and his then-deputy, Michael Saul; Sean Esten, an EDC employee who raised concerns about the wisdom of the loan guarantee; attorney Michael Corso; ex-Finance Committee Chairman Steven Costantino, the lead sponsor of the legislation that created the loan guarantee program under which 38 Studios got the funding; and former Rep. Jon Brien, another sponsor of the bill.

The letters invite them to testify "to provide your insight and describe your involvement in the Jobs Creation Loan Guaranty Program."

The EDC is suing Schilling, Stokes, Saul and 11 others, alleging its board was misled into approving the loan guarantee. The suit claims the defendants knew, or should have known, that 38 Studios was on a course to run out of money but concealed that information.

Schilling's attorney, Sarah Heaton Concannon, did not immediately return a message seeking comment. She has called the charges baseless.

MacBeth initially indicated she wanted to subpoena key witnesses but later said they would first be asked to appear voluntarily. Committee members have said they also want to hear from former Republican Gov. Don Carcieri, who set the 38 Studios deal in motion, and ex-Speaker Gordon Fox.

MacBeth said Carcieri and Fox haven't yet been asked to appear.

"These (letters) are just the beginning," she said.

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