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.
SAN FRANCISCO — Three years ago, the Giants and Padres were the two teams in it until the very end for Pablo Sandoval’s services. He ended up in Boston, and when he became available again over the past week, the Padres politely backed away.
They prefer youth and Rule 5 Draft picks. They came into this season knowing they might lose 100 games, and they didn’t mind. If anything, they welcomed the increased shot at the top pick in the 2018 draft. They’re here to tank, but the Giants (who expect to welcome Sandoval back on a minor league deal as soon as Friday) just won’t let them.
Thursday’s 5-2 loss to San Diego was like so many others over the past calendar year. The Giants didn’t hit, they didn’t come through in the clutch, they did not support their starting pitcher, and they did not guarantee a handshake line.
The Giants have lost 15 of 20 to the Padres since last year’s All-Star break, including three straight last July to kickstart a tailspin that has lasted over a year now. They have dropped four of five meetings in this second half, which was supposed to prove that a Padre-like rebuild is not needed up here in the Bay Area. They are five games behind the Padres in the race to finish a distant fourth in the National League, and in a season full of disappointment, that stands as one of the more embarrassing facts.
Not even Madison Bumgarner’s return to AT&T Park could turn the tide. The lefty looked good most of the night, but two homers left him with a rougher-than-hoped line. Bumgarner gave up four earned on two homers. He has allowed multiple homers in back-to-back games for the first time in his career. Both starts have come against the Padres.
“I’ve got to stop giving up homers,” Bumgarner said of his start. “That’s not going to work.”
Bumgarner said he felt fine physically, and his curveball — the pitch that has backfired on him most often since his return — feels right mechanically. He was facing his last batter in the seventh as George Kontos warmed up with a runner on. Corey Spangenberg hit a two-run shot to the deepest part of the yard to make it 4-2.
Buster Posey flied out with the bases loaded in the eighth. The Giants brought the tying run to the plate in the ninth but couldn’t score, which has been the norm against the Padres. The Giants are averaging just 3.2 runs per game during this 20-game stretch of futility against a team they once dominated.
“We need to win ballgames right now,” Bumgarner said. “We’ve got to start doing that. There’s no magic solution. We’ve got to start playing better, all of us.”
SAN FRANCISCO — A day after he did his press conference from a “Game of Thrones” throne, manager Bruce Bochy said he was happy the Giants won their series finale against the Indians and kept that plan in play. In that respect, he’s lucky his team wasn’t facing the Padres on Wednesday.
The Giants were on Thursday, however, and they continued their baffling stretch of ineptitude against what is supposed to be the worst team in the National League West. The 5-2 loss to San Diego was the 15th in the last 20 meetings between the two teams, one of which has a $200 million payroll and the other of which is actively tanking.
The Giants had a shot at a comeback in the eighth, but Buster Posey flied out to right with two outs and the bases loaded. Here are five things to know, if you are the curious type:
—- Madison Bumgarner has faced the Padres twice since returning. In 13 1/3 innings, he has allowed 10 hits and seven earned runs. He is getting hurt by a familiar problem for the 2017 Giants: The Padres have four homers off Bumgarner in those two starts. Hunter Renfroe and Cory Spangenberg took him deep Thursday, with Spangenberg hitting one out to the deepest part of the yard on Bumgarner’s final pitch.
—- This is the first time in Bumgarner’s career that he has allowed multiple homers in back-to-back starts.
—- Kyle Crick showed good stuff — sitting 96-97 — while stranding a runner on second in the eighth. He followed that with a scoreless ninth. The Giants should make it a priority to throw him into some deeper water over the next two months.
—- There’s an epidemic these days of outfielders making foolish throws to the plate. We see it just about every night, and it cost the Padres in the sixth. Gorkys Hernandez was on second and he took off right away on Denard Span’s single to right. Renfroe had no play at the plate but he threw it anyway and Span took second. He scored when Eduardo Nuñez singled to left.
—- The Giants announced their second consecutive sellout. That’s a streak. Maybe?