Governor Chafee seeks audit into 38 Studios finances

Governor Chafee has a plan to get to the bottom of the 38 Studios' fiasco.

Chafee says that the state will soon be hiring an accounting firm to do an in-depth forensic audit of 38 Studios finances, while at the same time he stressed the fact that he never wanted the state to partner with Curt Schilling's company, in the first place.

During Friday's press conference Governor Chafee basically said “I told you so”.

Back in 2010 when he was still candidate Chafee he strongly believed that giving 38 Studios a pile of cash was a bad idea.

“Since I was a candidate I thought it was a mistake. That wasn't a popular statement to make at the time and I know when I made it, it wouldn't be popular to make, but I felt that strongly about this.” said Chafee.

Governor Chafee also said that he thought that the deal getting done 2-years ago was influenced by the fact that the face of 38 Studios was Curt Schilling.

A sports hero known for helping the Red Sox “Reverse the Curse” and win a World Series.

“I suppose it factored in. I wasn't there for it. I wasn't looking at a baseball player, I was looking at a businessman, with no record in the industry.” said Chafee.

Schilling's track record now as a businessman with 38 Studios isn't real rosie.

With only one game produced that didn't sell anywhere near as many copies as it needed and 400 people, an entire staff, laid off.

On Thursday Governor Chafee said that there was no evidence that there was trouble with 38 Studios until the last few weeks.

“Every indication I got through all this process that everything is going according to the business plan.” said Chafee on Thursday.

Now to find out if that's true and to get answers about how the company fell so far, so fast, Chafee is in the process of hiring a national accounting firm to do an in-depth forensic audit of 38 Studios finances.

“We just want to know everything possible. The taxpayers have 10's of millions of dollars invested in this company. We've had difficulty getting answers from them and we want to know everything possible about what happened to every penny of that taxpayer dollars.” said Chafee.

The Governor did point out that the state is still trying to save this company by finding private investors but he didn't seem real optimistic about it.

Also Governor Chafee says he hasn't seen any evidence that there was any criminal wrongdoing at 38 Studios to put them in the financial fix they're in.

Chafee also said he expects there to be a lot of lawsuits as the fallout from 38 Studios' demise continues.