No federal charges for 38 Studios

Federal criminal charges will not be brought against Curt Schilling's famously failed game company; state investigation remains ongoing.

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The fallout surrounding Curt Schilling's bankrupt game company 38 Studios will not result in any federal charges, the United States Attorney's office in Rhode Island has said.

38 Studios still faces a state-level investigation.
38 Studios still faces a state-level investigation.

A spokesperson for U.S. attorney Peter Neronha told The Associated Press that the office conducted a "narrow and focused" examination of 38 Studios to judge whether or not federal laws were broken, and has decided to not continue the search.

Though 38 Studios no longer faces a federal case, the Amalur studio is not out of the woods yet. A state-level investigation remains ongoing, with Colonel Steven O'Donnell of the Rhode Island State Police confirming that all leads are being pursued.

A federal investigation into 38 Studios began in June, when the company filed for bankruptcy after the studio very publicly crumbled.

Rhode Island lured the developer to the Ocean State in 2010 with a controversial $75 million loan. The company was to create as many as 450 jobs by 2012, but instead shipped only only game--Kingdoms of Amalur: Reckoning--and laid off its entire staff in May.

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