It now appears someone was playing games with "38 Studios".
And we are not talking about the actual video games.
A little online digging by well–known investment manager Mike Riley discovered something very suspicious.
"I saw this trade and said, 'Wow, that really sticks out like a sore thumb,'" said Mike Riley, a financial and investment investor from Narragansett.
Riley was looking at trading of the “38 Studios” bonds.
On May 23rd 2012, one of the million-dollar investors sold his shares, making a nearly 200 thousand dollar profit.
The very next day, “38 Studios” closed its doors and the employees were let go.
Riley suspects the investor was tipped off.
Reporter question: So if insider trading took place, is that illegal in this type of case?
"Absolutely. Since the early 1990's, municipal bonds have fit under the same SEC guidelines as any other public market," said Riley.
While the “38 Studios” investor's name has not been made public Riley has filed a formal complaint with the S.E.C., the Securities and Exchange Commission.
"I talked with a spokeswoman from the Securities and Exchange Commission in Washington, DC and she could neither confirm, nor deny the existence of a '38 Studios' complaint or investigation."
But at least one candidate for Governor is also calling on the SEC to investigate.
"Being a former prosecutor, it's very concerning, it's very disturbing that someone potentially could have used it based on insider information and then made a profit on it," said Cranston Mayor Allan Fung, (R) Candidate for Rhode Island Governor.
"I think it smells. I think it smells like insider trading," Mike Riley said.
If so, both the investor and person who tipped him off could be sent to prison.