Why is Rhode Island suing Curt Schilling?

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Why is Rhode Island suing Curt Schilling?

From Comcast SportsNetPROVIDENCE, R.I. (AP) -- Rhode Island's economic development agency on Thursday sued former Red Sox pitcher Curt Schilling and some of its former officials, saying they committed fraud and other acts that misled the state into approving a 75 million loan guarantee to his failed video game company.The suit was filed in Rhode Island Superior Court four months after 38 Studios filed for bankruptcy following a spectacular collapse that has likely left the state on the hook for as much as 100 million.Among other things, the lawsuit claims that executives at 38 Studios, as well as former Economic Development Corp. Executive Director Keith Stokes and others, knew the company would run out of money by 2012, but concealed that from the EDC board, which made the final decision on whether to back the deal.The board in 2010 lured 38 Studios to Providence from Massachusetts with the loan guarantee.The lawsuit also alleges that Schilling, 38 Studios executives and others engaged in racketeering and conspiracy. The suit does not ask for a specific dollar amount but wants Schilling and others to repay the bonds and seeks triple damages.In addition to Schilling, who founded the company, and Stokes, the suit names Michael Saul, a former top official at the EDC; two law firms that worked with the agency; a financial adviser for the state; Wells Fargo Securities and Barclays Capital, investment banks hired by the EDC to assist in issuing bonds for the deal; and an insurance company for 38 Studios.Gov. Lincoln Chafee said the EDC board, of which he is the chairman, authorized the legal action in an attempt to recoup some of the state's money."My message to Rhode Islanders is this: I know that you work hard for your paychecks, and for your tax dollars to be squandered is unacceptable," Chafee said in a video statement. "The Board's legal action was taken to rectify a grave injustice put upon the people of Rhode Island."Chafee said he would not comment further.Messages left for Schilling, Stokes and Saul weren't immediately returned.38 Studios collapsed into bankruptcy in June. Rhode Island is likely responsible for about 100 million when interest is factored in on the bonds the state issued on the company's behalf.The suit says that EDC board members were not experts in "law, lending, video gaming or economic development" and relied on information from Stokes, Saul, Schilling and others at 38 Studios. The suit says the company failed because of risks that were not disclosed to the board "but were or should have been known" by the defendants.The suit also says the EDC board was misled about whether 38 Studios would have enough money to finish the video game, codenamed Copernicus, that was critical to its success. It says the company's own financial projections showed a shortfall of about 22 million of the estimated 75 million needed. The company got only about 50 million of the 75 million in bond funds because some was kept in reserve.The suit says the defendants should have known it was "likely that 38 Studios would run out of cash and go out of business by 2012."Schilling's firm tried to raise outside capital but was unable.The suit also says that an EDC analyst who raised questions about the loan guarantee -- and suggested he could not support it -- was later excluded from doing further work on it by Saul, who oversaw the agency's financing programs at the time. As a result, the agency's customary risk analysis of the deal was never completed or submitted to the board, according to the suit.The suit accuses Saul and attorney Robert Stolzman, who served as EDC secretary, of withholding from the board "negative" opinions about the proposed deal, including from two consultants who said they wouldn't invest 75 million in 38 Studios if they were in the EDC's position.In May, the company laid off its nearly 300 employees in Providence and more at a studio in Maryland it acquired in 2009.The suit says Wells Fargo also earned 473,000 in "hidden commissions" from 38 Studios that the state didn't know about -- and which ate into the total available to run the company.Dana Crothers Obrist, a spokeswoman for Wells Fargo, said the company does not believe the lawsuit has merit, and it is prepared to defend itself vigorously.A spokesman for Barclays had no comment.One of the law firms named in the suit, Adler Pollock & Sheehan, which had served as general counsel to the EDC, and employs Stoltzman, said the suit reflects a "misappreciation" of its role and that it would "vigorously" defend itself.Thomas Moses, president of Moses Afonso, which worked on the bond sale and was named in the suit, said he had not seen the suit as of Thursday afternoon. But he called any lawsuit involving his firm "frivolous and without merit."Separately, state law enforcement authorities in Rhode Island are investigating 38 Studios' finances. A federal probe resulted in no charges.

Kelly's a potential weapon in the Red Sox bullpen

Kelly's a potential weapon in the Red Sox bullpen

Joe Kelly’s ascent to the eighth inning has been pretty darn rapid.

Tyler Thornburg’s questionable right shoulder and the loss of other relievers elsewhere -- remember Koji Uehera, now of the World Champion Cubs? -- have thrown him into the spotlight.

That doesn’t make Kelly anything close to a certainty, though.

Entering spring training, even Craig Kimbrel, one of the very best closers around, faced some doubt after control flare-ups a year ago.

In Kelly, the Sox have an overpowering righty who couldn’t harness his stuff in the past. Someone who conspired with Clay Buchholz in making the Red Sox rotation look dismal midseason.

Kelly’s ineffectiveness last year, in fact, was one of the reasons they traded for Drew Pomeranz on July 14. And, logically, one of the reasons the Red Sox did not want to subsequently rescind the trade for Pomeranz.

The last start Kelly made with the Red Sox (and possibly in his big-league career) was on June 1 against the Orioles. He allowed seven runs in 2 1/3 innings and was immediately demoted.

He didn’t make it back to Boston until late July.

The best reasons to believe in Kelly now, in Thornburg’s absence, are straightforward: he was awesome at the end of last year, and he is overpowering.

In an eye-opening September, he held hitters to a .180 average in 14 innings. He gave up one earned run, carrying a 0.64 ERA, struck out 20 and walked just three.

That’s awesome potential.

He’s always had that, if nothing else, though: potential. What’s to say Kelly lives up to it? He might. There’s just not a lot to hang your hat on.

In eight innings this spring, Kelly has as many walks, seven, as he does strikeouts.

“The point we’re trying to stress to him, no one in this game is perfect,” Sox manager John Farrell told reporters Monday, including the Boston Herald. “He doesn’t have to be perfect with every pitch located. He has premium stuff. Trust it, and get ahead in the count a little bit more frequently.”

Early in spring training, Kelly talked about how he was still learning on the job, as you’d expect. That’s going to continue to be the case, and he'll continue to have to prove he's at last arrived.

Celtics move into No. 1 spot in East as Cavs get crushed by Spurs

Celtics move into No. 1 spot in East as Cavs get crushed by Spurs

SAN ANTONIO -- The Cavaliers acknowledged having heavy legs, yet there is something far weightier on the minds of the defending NBA champions.

Cleveland is in the midst of one of its worst stretches this season and there is little time to fix it.

Kawhi Leonard scored 25 points and the San Antonio Spurs dismantled the ailing Cavs 103-74 on Monday night in a much-anticipated showdown that turned into a major letdown for Cleveland.

"The way we've been struggling, (the Spurs are) the last team that you want to play," said LeBron James, who was fine after taking an elbow to the neck. "A well-oiled machine like this, they exploit everything that you're not doing well at that point in time of the season and right now we're not playing good basketball."

James, who finished with 17 points, eight rebounds and eight assists in 29 minutes, said he will play Thursday at Chicago.

Cleveland (47-26) dropped its second in a row, set a season low for points and fell a half-game behind Boston (48-26) for the top seed in the Eastern Conference playoffs. The Cavaliers have nine games remaining, all against teams in the East, including a visit to Boston on April 5.

James said the standings "always matter," but playing more consistently is far more important and he refused to blame injuries or an arduous schedule for the team's troubles.

"It matters more that we're playing better basketball than where we're at," he said. "If that results in us having the No. 1 seed, the No. 2 seed, 3 or whatever the hell it is, we need to play better basketball. That's what it comes down to."

What Cleveland is seeking, the Spurs have already found.

San Antonio (57-16) is two games behind Golden State (59-14) for the league's best record entering a home game against the Warriors on Wednesday.

The Spurs have won five straight and 8 of 10 after sweeping the season series with the Cavaliers.

"It was a big game, but in the end, it's just one game, and one win," San Antonio guard Tony Parker said. "We're trying to be consistent. We're trying to play the same way every game. It was definitely surprising. Coming off a loss, I thought they would play with a lot more energy, but it can happen. It's a long season. It's just one game and I'm sure they're going to bounce back and use this game as motivation."

LaMarcus Aldridge and Pau Gasol added 14 points apiece for the Spurs.

San Antonio led by as many as 33 to the delight of the sold-out crowd, and the Spurs' bench outscored the Cavaliers' reserves 49-24.

"We did a good job coming out early and then keeping our foot on the pedal," Leonard said.

Cleveland, which was already without injured Iman Shumpert, received more bad news Monday morning when it was announced that Kyle Korver will miss at least two more games with a sore left foot.

"You lose Korver and Shumpert off your bench and things tend to change," Cavaliers coach Tyronn Lue said. "With those two guys out, we tried some different things and it didn't work. It was not on the bench. It was on me."

Cleveland opted to play its stars rather than rest them, but the trio of James, Kyrie Irving and Kevin Love sat out the fourth quarter of the Cav's second lopsided loss in the past two weeks.

Lue said he has considered resting his stars over the team's final nine games, which James is not in favor of.

"Coach is going to have his logic of things, but we need to play," he said.

James exited with 25 seconds remaining in the third after taking an elbow to his neck from David Lee on a rebound. James continually rubbed the area before collapsing after he crossed midcourt. He remained on the floor for about a minute before walking unassisted to the bench.

James left for the locker room early in the fourth quarter during a timeout, but said afterward he is fine.

EXTRA SHOOTING

Irving returned to the court for about 15 minutes following the loss to work on his jump shot. The star guard had eight points and two assists in 26 minutes. He finished 4 for 13 from the field and missed his two 3-point attempts.

TIP-INS

Cavaliers: Cleveland completed its schedule against the West, finishing 16-14. In addition to losing to the Spurs by 29 points, the Cavaliers lost by 35 to Golden State and 30 to the Los Angeles Clippers . . . James needs 24 points to pass Shaquille O'Neal for seventh overall in career scoring. O'Neal has 28,596 career points . . . The Cavaliers averaged 116.3 points in their previous four games.

Spurs: San Antonio is holding opponents under 100 points per game for the 22nd straight season . . . Danny Green tied his season high with four blocked shots . . . Leonard has scored in double figures in 100 straight games.

UP NEXT

Cavaliers: At the Chicago Bulls on Thursday night.

Spurs: Host the Golden State Warriors on Wednesday night.