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SEC Probing Schilling’s Failed 38 Studios Video-Game Bond Deal

The U.S. Securities and Exchange Commission is investigating a $75 million financing by a Rhode Island agency for Curt Schilling’s bankrupt video-game company.

The Rhode Island Economic Development Corp. sold federally taxable municipal bonds backed with the state’s moral obligation to induce the former Boston Red Sox pitcher to move 38 Studios LLC from Massachusetts to Providence in 2010. The company declared bankruptcy last year, with taxpayers on the hook to repay the bonds.