Wells Fargo agrees to $800,000 penalty in 38 Studios case

PROVIDENCE, R.I. (AP) — Wells Fargo Securities has agreed to pay an $800,000 civil penalty to settle a U.S. Securities and Exchange Commission lawsuit over Rhode Island’s failed $75 million deal with former Boston Red Sox pitcher Curt Schilling’s video game company.

Wells Fargo and the SEC announced the proposed settlement in court filings Monday. Wells Fargo doesn’t admit or deny wrongdoing. A federal judge must approve it.

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 about the bonds. The economic development agency previously paid a $50,000 penalty.

Claims against a Wells Fargo employee are still pending.

Categories: National News