Subpoenas go out in 38 Studios probe in RI
PROVIDENCE, R.I.—Subpoenas have gone out in Rhode Island seeking records relating to former
The Providence Journal reports Wednesday ( http://bit.ly/LKl7kK) Bank Rhode Island and the Rhode Island Economic Development Corp. have confirmed receiving subpoenas.
Bank Rhode Island loaned $8.5 million this year to help 38 Studios remain viable. The company filed for bankruptcy protection last week.
The company was lured to Rhode Island in 2010 after the EDC offered a $75 million loan guarantee.
Federal and state authorities have launched probes into the company's financial transactions.
The Journal reports that Bank RI loaned the money to companies affiliated with a film tax credit broker. The loans were partly secured by tax credits 38 Studios had applied for but had not received.
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Information from: The Providence Journal, http://www.providencejournal.com
