Former House Finance Chair Testifies

Former House Finance Chair, Steven Costantino returned to the State House Thursday to testify on his role in the failed $75 million 38 Studios deal.

He spent five hours answering questions from an attorney and lawmakers.

"I did not encourage or induce anyone in or out of government to grant any benefits to 38 Studios. I was not responsible to review the details of the company’s finances to determine if it was proven to assist it with state financial support,’ said Costantino at the start of his testimony.

Tens of thousands of documents unsealed last year credit Costantino with adding $75 million to the loan guarantee program behind the failed deal. Attorney William Dimitri repeatedly asked him about that piece of information.

"Did you ever say to Mr. Stokes why don’t we just increase it to 50 to 125 million dollars to accommodate 38 Studios?” asked Dimitri.

Costantino replied no.

About four hours into the meeting committee members began their questioning.

"Do you feel like you mislead your colleagues?" asked Rep Mike Chippendale.

"No, I feel I was misled," said Costantino.

 "You feel you were?” said Chippendale.

"Yes,” said Costantino.

"By whom?” said Chippendale.

"I felt that the fact that they put pressure on people not to talk about this, the fact that they didn’t follow what was in the legislation,” said Costantino.

Costantino told ABC 6 News that us all things considered he would have changed the way the deal went down in hindsight.

"If I were ever put in the position again of not talking about a company and asked not to talk about it, I would say absolutely not. I’m going to say where the money is,” said Costantino.

During the testimony we did learn that Costantino was questioned by a Grand Jury and State Police about the failed deal.