38 Studios will not face federal charges, investigations ongoing

38 Studios will not face federal criminal charges, including bank fraud, at this time, reports the Associated Press.

According to spokesman for U.S. Attorney Peter Neronha Jim Martin, the office conducted a narrow review of the studio to check for any broken federal laws.

"No further federal action is planned at this time," said Martin.

The company, owned by former Red Sox pitcher Curt Schilling, went bankrupt and laid off its entire staff in June. 38 Studios had recently received a $75 million state loan guarantee; after the company went bankrupt, the state was left to deal with over $100 million in debt, which included both the loan and interest.

Investigations on whether or not state laws were violated continue. Pursued topics include false statements or false information given to the banks that loaned the company money. The state Economic Development Corp. is also investigating possible persons financially liable for the deal.