$800K Wells Fargo penalty OK’d in Schilling video game deal

Money
38 Studios_1553096314689

FILE – In this Wednesday, May 16, 2012, file photo, former Boston Red Sox pitcher Curt Schilling, center, is followed by members of the media as he departs the Rhode Island Economic Development Corporation headquarters, in Providence, R.I. Wells Fargo Securities has agreed to pay an $800,000 civil penalty to settle a U.S. Securities and […]

PROVIDENCE, R.I. (AP) — A federal judge has approved an agreement for Wells Fargo Securities to pay an $800,000 civil penalty to end a lawsuit by the U.S. Securities and Exchange Commission over Rhode Island’s failed $75 million deal with former Boston Red Sox pitcher Curt Schilling’s video game company, 38 Studios.

Wells Fargo doesn’t admit or deny wrongdoing under terms of the judgment entered Wednesday. Claims against a Wells Fargo employee are still pending.

A Wells Fargo spokeswoman says officials look forward to putting the matter behind them.

The case represents the final legal battle over 38 Studios. The state’s economic development agency used bond funding to lure the company from Massachusetts to Rhode Island, where it went bankrupt.

The SEC accused Wells Fargo and the economic development agency of making misleading statements.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Providence

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