Curt Schilling sued by Citizens Bank over 38 Studios

PROVIDENCE, R.I. (AP) — State and federal law enforcement agencies are stepping up the investigation into former Red Sox pitcher Curt Schilling's bankrupt video game company.

The Boston Business Journal reports that Citizens Bank is suing 38 Studios for a $2.4 million loan they gave Schilling's company.

Meantime, subpoenas have gone out in Rhode Island seeking records relating to Schilling's video game company.

The Providence Journal reports Wednesday 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.