State Police: No charges in 38 Studios case

State Police Col. Steven O’Donnell and Attorney General Peter Kilmartin announced Friday that no charges will be filed as a result of their criminal investigation into the failed $75 million 38 Studios deal.

The investigation focused on events surrounding the deal that took place from 2010 to 2012.

"A bad deal does not always equate to an indictment,” said O’Donnell.

O’Donnell calls the deal flawed and lacking transparency. But after four years of investigating he says there’s not sufficient evidence of criminal activity.

"There were people involved in the process that were less than candid in what had transpired. It doesn’t mean that’s a crime,” said O’Donnell.

Curt Schilling’s video game company filed for bankruptcy in 2012.  The criminal investigation began shortly after. There’s been a lot of speculation in the years since about the state house deal and who knew what when.

"I’m not going to get into who did or did not disclose what but it’s far to say that we utilized the grand jury process to compel testimony if someone were uncooperative. One needs to remember the fact that some individuals can invoke privileges,” said Kilmartin.

Every member of the 2010 General Assembly, which passed the Job Creation Guarantee Program, was contacted in the process of this case.

In total 146 people were interviewed, 11 were called before a grand jury.

"Bad politics, bad public policy, bad business decisions simply do not always rise to the level of criminal conduct,” said Kilmartin.

The case will remain open, but not active. Officials say they will review new evidence if it does come about.

O’Donnell and Kilmartin did emphasize that this investigation is separate from the on-going civil proceedings.

(C) WLNE 2016