Federal Investigation of 38 Studios Closed, No Charges Brought

The federal investigation into Curt Schilling's 38 Studios has ended. In some rare good news for the former head of the Kingdoms of Amalur developer, federal authorities have decided that no charges will be brought as a result of the investigation.

According to the Associated Press, a spokesperson for U.S. Attorney Peter Neronha said, "No federal action is planned at this time." The spokesperson also said that the investigation had centered around possible federal charges of bank fraud.

However, 38 Studios is not off the hook yet. Col. Steven O'Donnell said that the Rhode Island State Police are still conducting an investigation. This investigation seeks to find out whether 38 violated Rhode Island state laws.

As previously reported, 38 Studio's defaulted on a $75 million loan from the state of Rhode Island, which liquidated 38's existing assets earlier this year. Now, AP estimates that -- with interest -- Rhode Island is on the hook for over $100 million.

Source: Bloomberg Businessweek