The US Securities and Exchange Commission (SEC) has charged a Wells Fargo unit and Rhode Island's economic development agency, the Rhode Island Commerce Corp, with civil fraud over a bond deal for a now-bankrupt video-game company called 38 Studios, founded by former Boston Red Sox pitcher, Curt Schilling. In an SEC complaint filed on Friday, the agency said that in 2012, the state of Rhode Island, which had invested $US1 million ($A1.35 million) into 38 Studios through its Economic Development Authority, Wells Fargo disputes the allegations and will respond in court, said a spokesman.
The US Securities and Exchange Commission (SEC) has charged a Wells Fargo unit and Rhode Island's economic development agency, the Rhode Island Commerce Corp, with civil fraud over a bond deal for a now-bankrupt video-game company called 38 Studios, founded by former Boston Red Sox pitcher, Curt Schilling. The accusations stem from a $75m bond offering in 2010 that was part of a Rhode Island programme intended to spur economic development, says the SEC. Wells Fargo disputes the allegations and will respond in court, said a spokesman.