Why is Rhode Island suing Curt Schilling?

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Why is Rhode Island suing Curt Schilling?

From Comcast SportsNetPROVIDENCE, R.I. (AP) -- Rhode Island's economic development agency on Thursday sued former Red Sox pitcher Curt Schilling and some of its former officials, saying they committed fraud and other acts that misled the state into approving a 75 million loan guarantee to his failed video game company.The suit was filed in Rhode Island Superior Court four months after 38 Studios filed for bankruptcy following a spectacular collapse that has likely left the state on the hook for as much as 100 million.Among other things, the lawsuit claims that executives at 38 Studios, as well as former Economic Development Corp. Executive Director Keith Stokes and others, knew the company would run out of money by 2012, but concealed that from the EDC board, which made the final decision on whether to back the deal.The board in 2010 lured 38 Studios to Providence from Massachusetts with the loan guarantee.The lawsuit also alleges that Schilling, 38 Studios executives and others engaged in racketeering and conspiracy. The suit does not ask for a specific dollar amount but wants Schilling and others to repay the bonds and seeks triple damages.In addition to Schilling, who founded the company, and Stokes, the suit names Michael Saul, a former top official at the EDC; two law firms that worked with the agency; a financial adviser for the state; Wells Fargo Securities and Barclays Capital, investment banks hired by the EDC to assist in issuing bonds for the deal; and an insurance company for 38 Studios.Gov. Lincoln Chafee said the EDC board, of which he is the chairman, authorized the legal action in an attempt to recoup some of the state's money."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," Chafee said in a video statement. "The Board's legal action was taken to rectify a grave injustice put upon the people of Rhode Island."Chafee said he would not comment further.Messages left for Schilling, Stokes and Saul weren't immediately returned.38 Studios collapsed into bankruptcy in June. Rhode Island is likely responsible for about 100 million when interest is factored in on the bonds the state issued on the company's behalf.The suit says that EDC board members were not experts in "law, lending, video gaming or economic development" and relied on information from Stokes, Saul, Schilling and others at 38 Studios. The suit says the company failed because of risks that were not disclosed to the board "but were or should have been known" by the defendants.The suit also says the EDC board was misled about whether 38 Studios would have enough money to finish the video game, codenamed Copernicus, that was critical to its success. It says the company's own financial projections showed a shortfall of about 22 million of the estimated 75 million needed. The company got only about 50 million of the 75 million in bond funds because some was kept in reserve.The suit says the defendants should have known it was "likely that 38 Studios would run out of cash and go out of business by 2012."Schilling's firm tried to raise outside capital but was unable.The suit also says that an EDC analyst who raised questions about the loan guarantee -- and suggested he could not support it -- was later excluded from doing further work on it by Saul, who oversaw the agency's financing programs at the time. As a result, the agency's customary risk analysis of the deal was never completed or submitted to the board, according to the suit.The suit accuses Saul and attorney Robert Stolzman, who served as EDC secretary, of withholding from the board "negative" opinions about the proposed deal, including from two consultants who said they wouldn't invest 75 million in 38 Studios if they were in the EDC's position.In May, the company laid off its nearly 300 employees in Providence and more at a studio in Maryland it acquired in 2009.The suit says Wells Fargo also earned 473,000 in "hidden commissions" from 38 Studios that the state didn't know about -- and which ate into the total available to run the company.Dana Crothers Obrist, a spokeswoman for Wells Fargo, said the company does not believe the lawsuit has merit, and it is prepared to defend itself vigorously.A spokesman for Barclays had no comment.One of the law firms named in the suit, Adler Pollock & Sheehan, which had served as general counsel to the EDC, and employs Stoltzman, said the suit reflects a "misappreciation" of its role and that it would "vigorously" defend itself.Thomas Moses, president of Moses Afonso, which worked on the bond sale and was named in the suit, said he had not seen the suit as of Thursday afternoon. But he called any lawsuit involving his firm "frivolous and without merit."Separately, state law enforcement authorities in Rhode Island are investigating 38 Studios' finances. A federal probe resulted in no charges.

Giants Notes: Marrero hopes to be back; Posey faces Romo

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USATSI

Giants Notes: Marrero hopes to be back; Posey faces Romo

SAN FRANCISCO — About 45 minutes after the Giants announced that Chris Marrero had been designated for assignment, the left fielder walked up to the locker of one of the newcomers. Marrero patted Christian Arroyo on the back and shook his hand, congratulating him for his first call-up to the big leagues. 

“That’s my boy,” he said later. “I was really happy for him.”

The Arroyo promotion and the addition of Drew Stubbs signaled the end of Marrero’s April run in the lineup. He was cut and Aaron Hill was put on the disabled list, clearing two roster spots. Just as Arroyo forced his way up with three huge weeks in Triple-A, Marrero forced his way onto the opening day roster with a monster spring that included eight homers. He had just five hits in 38 at-bats before Monday’s moves.

“The team is struggling and we’ve got to make some moves,” Marrero said. “I believe in myself and I’ll go down and get back to how I felt in spring training. This is what I’ve worked for my whole life. I lost the feel that I had in the spring. Things were a little rushed. I came in and worked hard every day to try and find it. I’m going to keep working. I haven’t lost confidence in myself.”

Marrero was put in a bit of a tough spot. He played just about every day in Scottsdale because he was trying to win a job, and when he finally did make it, some Giants coaches felt he was a bit worn down. The team’s brutal start to the season put a glaring spotlight on left field, and this move became obvious over time.

Marrero said he likes it here, and that if he isn’t claimed, he will go to Triple-A Sacramento and try to find that spring swing and get back up here. Count Bruce Bochy among those hoping it goes down that way. 

“We thought a lot of him and still do,” Bochy said. “He’s a good hitter.”

--- Arroyo had a 4.4 GPA in high school, so the Giants knew he was smart. He’s savvy, too. There’s nothing like picking up the longest-tenured player on the team, literally. After snagging a ricochet in the fourth inning last night, Arroyo kept running and lifted Cain off the grass. They then chest-bumped. 

“That just kind of happened,” Arroyo said. “He hit it, I looked at Cain going down and saw the ball, went running and got it, instincts took over. I made a throw and got the guy. It was a fun play. In that moment, I was just pumped up. It’s one of those plays you get excited over.”

Arroyo said he heard Cain yelling and he thought he was hurt, so that’s why he ran over. Cain did have an X-ray on the foot that got hit but it came back negative. 

“Christian did a great job handling himself,” Cain said. “He picked me up big-time.”

The best part of the play came hours after it was made. As Cain talked to reporters, Brandon Crawford — who was in position to scoop the grounder in the fourth — was standing at his locker, a few feet away.

“Let it go through next time,” he said softly.

--- Denard Span was out on the field Monday afternoon, but he’ll miss another two to four days with that right shoulder injury. This will truly be a day-to-day situation. If at any point the Giants feel they need coverage, Span can be put on the 10-day DL. 

--- Hill apparently felt discomfort after playing long toss on the road trip. He can swing a bat but he was going to be kept from throwing for three to four days, so he was put on the DL.

--- This spring, Posey was asked about facing Sergio Romo. Here was his long tendencies-filled answer. Posey faced Romo in the eighth and flied out. 

"It was a little weird, I'm not going to lie," he said. "I caught him for so long. It's definitely interesting being in the batter's box instead of being the plate."

Was there a nod or "hey what's up" look between the two?

"I've caught him long enough to know you don't look at him," Posey said, smiling. 

--- If you missed it, the standing ovation for Romo was a very, very cool moment. Also, here's my story on Madison Bumgarner, who spoke for the first time since his injury. And here's the first story on Arroyo, with a fun anecdote about his mom. She'll be in the stands Tuesday. And finally, my game story from last night. 

Lynch: There's interest in 49ers' No. 2 overall pick

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Lynch: There's interest in 49ers' No. 2 overall pick

The 49ers have narrowed their list of potential draft picks for the No. 2 overall selection on Thursday evening but they are also keeping alive the possibility of a trade.

“I can tell you with the No. 2 (pick), there have been calls. There’s been interest, but, I think, nothing specific,” 49ers general manager John Lynch told reporters Monday at team headquarters in Santa Clara.

“It’s coveted. When you have a pick that high, I think that’s natural.”

Stanford defensive lineman Solomon Thomas, quarterback Mitchell Trubisky, running back Leonard Fournette and several options at defensive back are among the options most often linked to the 49ers at the No. 2 overall pick.

“We’re going to listen right up until draft day,” Lynch said. “But otherwise we’re going to pick a player at two that we feel is a cornerstone for this franchise for years to come and we’ll be very passionate about that pick and what that player can do for us moving forward.”

The 49ers have two veteran quarterbacks – Brian Hoyer and Matt Barkley – currently under contract. Lynch said the 49ers have not ruled out the possibility of selecting a quarterback with the team’s top pick.

“I think we’ve stated from the beginning that a franchise quarterback is something we believe is essential to winning in this league,” Lynch said. “We hope that Hoyer and Barkley come in, and they were both brought in for a reason, but we feel like we’ll continue, always continue, to try to improve ourselves at that position.”

The coaching staff will get its first opportunity to evaluate the current roster, beginning Tuesday. With new coach Kyle Shanahan, the 49ers are allowed to conduct a voluntary three-day minicamp before the draft.

“We have a good understanding of where we are and what we’re looking for,” Lynch said. “In terms of just getting a look real quick, and whether that will change our mind on anything, but you would hate not to give guys an opportunity to go show what they are doing before you went out and did that.

“We’ll use it for what it’s worth. I don’t know how much value. I think more than anything our coaches are just really excited to get guys out on the field, so we’ll use it as such. We’ve got a couple players in here on a tryout basis and so we’re happy for that, to see if we can add some things. We’ll evaluate but continue to work on the draft process as well.”

Lynch said the 49ers have implemented changes to the team’s grading process for the draft, drawing on a model the New England Patriots set up. Vice president of player personnel Adam Peters worked in the Patriots’ scouting department before advancing to director of college scouting with the Denver Broncos. Shanahan is also familiar with the grading system from his time with the Atlanta Falcons under general manager Thomas Dimitroff, formerly a Patriots personnel executive.

“I think we tried to create an environment that’s collaborative, where people can be confident in sharing their opinions, and we had strong opinions,” Lynch said. “They didn’t always agree, but we’ve gotten to a point where there’s consensus. Ultimately, it will be Kyle and I together making those decisions and that’s kind of where we are this week.”