Box of 38 Studios documents surfaces

PROVIDENCE, R.I. — Senate President Dominick Ruggerio and key members of his leadership team on Wednesday filed a bill requiring the release of all records related to the 38 Studios investigation after learning the state police have recently discovered "a box of documents."

There was no immediate response from the attorney general's office on the contents of the box, and when and where it was discovered.

Laura Meade Kirk, the spokeswoman for the state police, said Wednesday night: "The Rhode Island State Police has already released what we had believed to be all records relating to the 38 Studios investigation. We were recently made aware of some additional documents that should have been released. We are in the process of reviewing these and will release them as soon as possible."

The bill says: "Notwithstanding any other provision of this chapter or state law, any investigatory records generated or obtained by the Rhode Island state police or the Rhode Island attorney general in conducting an investigation surrounding the funding of 38 Studios, LLC by the Rhode Island economic development corporation shall be made available to the public.'' (A similar bill has already cleared the House.)

Asked what prompted the introduction of the Senate bill late in the legislative session, Ruggerio, D-North Providence, said: "In light of what I just learned today, that there were some records that were found."

The Senate president said he was not free to identify the source of his information, "but I have been led to believe the state police might have found additional information that is pertinent to the 38 Studios situation and that's why we are introducing the legislation." Asked how the documents turned up, he said, "My understanding is that they found some information that was in a box, in a different room or something like that."

"I think they should release the records," he said. 

He said he understands the resistance in some quarters to releasing grand jury records, and ultimately, a Superior Court judge's decided on May 19 against doing so. 

But, "'I think the revelation of new information that the state police have discovered might be critical to this particular issue at this time,'' Ruggerio said. "I think this is a compelling issue, that is really on the minds of Rhode Islanders ... and I think this will shed a lot of light on some of the questions that might not have been answered in the past." 

According to Gov. Gina Raimondo's spokesman, Mike Raia, "the governor is very disappointed that a number of Rhode Island State Police documents that should have been released previously were not. Governor Raimondo was against 38 Studios from the start and has pressed for the release of all documents related to the case."

Rhode Island's failed 2010 investment in retired Red Sox pitcher Curt Schilling's doomed and ultimately bankrupt video-game venture tied the state in political and legal knots for years.

Settlements in a civil suit against the architects of the deal reduced, but did not eliminate the taxpayer cost of the soured $75-million loan deal. 

The words 38 Studios still haunt current-day discussions about state giveaways to entice businesses to move here.

Last summer, the state police and the attorney general’s office announced that the investigation into the deal yielded no evidence of criminal activity. No charges were brought against anyone involved.

While grand jury testimony remains sealed, the state police released some documents in March. This included interviews with more than 60 witnesses, but the interviews missing from the document dump seemed more important than what was shared. 

There were no transcripts of interviews with any state senators, 36 representatives, or Attorney General Peter F. Kilmartin, who was a state lawmaker when the General Assembly approved the legislation that allowed the Economic Development Corporation loan guarantee for 38 Studios.

Also missing: any indication that three of the major players when the deal was struck — then-House Speaker Gordon Fox, former House Speaker William Murphy and tax credit broker Michael D. Corso — were ever interviewed by state investigators.  

After criticism from Schilling, Col. Ann Assumpico called reporters to the State House to criticize the investigation, completed by her predecessor Col. Steven G. O’Donnell.

She questioned why some individuals were interviewed by phone, and why investigators did not record all conversations. 

— kgregg@providencejournal.com

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