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38 Studios' $75 million loan from Rhode Island investigated by SEC

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The U.S. Securities and Exchange Commission investigated the $75 million loan guarantee that the Rhode Island Economic Development Corporation provided to Curt Schilling's now-bankrupt 38 Studios, WPRI reports.

Documents obtained by WPRI indicate that the EDC responded to requests from the SEC over a five-month period last fall and winter. EDC spokeswoman Melissa Czerwein later confirmed that the organization hired lawyers from Cohen & Gresser "based on their expertise in relation to an inquiry from the SEC."

According to Cohen & Gresser's website, the firm has "represented clients in investigations conducted by virtually every significant federal agency including the Securities and Exchange Commission (SEC)."

Details about the exact nature of the SEC's probe were not disclosed. The federal agency was created in 1934, and exists to "protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation," according to the SEC website.

Last month, a federal judge ruled that Rhode Island's suit against many of those involved in the approval for the loan guarantee, including former 38 Studios and EDC employees, could proceed. The developer declared bankruptcy in June 2012, and the state filed suit late last year.