Growing Chorus Say Kilmartin is Wrong - 38 Studios Docs Can Be Released

GoLocalProv News Team

Growing Chorus Say Kilmartin is Wrong - 38 Studios Docs Can Be Released

Former AG Arlene Violet
A former Rhode Island Attorney General is charging that current Attorney General Peter Kilmartin could seek permission of the court to release the 38 Studios grand jury proceedings and State Representative Robert Craven agrees.

Arlene Violet, during the taping of ABC6’s “In the Arena” on Thursday outlined how Kilmartin could seek a declaratory judgment of the Superior Court to unseal the records of the grand jury. 

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Former Assistant AG, Rep. Bob Craven
Hours later, Craven issued a press release outlining functionally the same legal strategy as Violet. Craven told GoLocalProv.com in an interview Thursday night that he believes “Kilmartin is wrong.”

Craven, a former assistant Attorney General, is calling on Kilmartin to file a declaratory judgment action in Providence Superior Court seeking the court’s instruction on the release of the grand jury documents and testimony in the 38 Studios investigation.  

“Although the Attorney General has made his position on the disclosure of 38 Studios materials clear, the Rhode Island Supreme Court stated in a 1998 decision that there is ‘no per se rule against disclosure of any and all information which has reached the grand jury,’ and in the interest of the public’s right to know, our courts should decide the matter,” said Craven.

Raimondo flips position appearing on WJAR on Weds
Raimondo Now Wants Release

Earlier in the week, Raimondo’s press spokesperson, Marie Aberger, told GoLocal that the Governor wanted the process to conclude before releasing the documents.

“She’s been clear all along that taxpayers demand and deserve transparency and accountability. Last year, we made tens of thousands of documents available to the public. Releasing documents from a pending criminal investigation is a decision for the Attorney General. Once the legal process has concluded, Governor Raimondo encourages the Attorney General to take action to make all records from this investigation public," said Aberger.

The Governor changed her position on Wednesday. Raimondo told WJAR that she believed Kilmartin should petition the courts for the documents -- only after correcting herself when she suggest "we" ought to petition the courts, ostensibly meaning her or a wider population doing so. 

"At the appropriate time I do think we ought to....he should petition the courts to let the documents be opened so everybody can see," Raimondo told WJAR on Wednesday, stumbling over who should be doing the petitioning. 

Cranston Mayor Allan Fung
More than 25 Governmental, Reform Leaders Calling on Kilmartin to Release Documents 

On Thursday, Mayor Scott Avedisian of Warwick and Allan Fung of Cranston joined the chorus of voices in the state calling for transparency. 

"The collapse of 38 Studios will burden the taxpayers of Rhode Island with millions of dollars of debt for years to come and has brought about another cycle of enormous cynicism in the state,” said the Mayors in a joint statement emailed to GoLocal. “After a four-year investigation, taxpayers of Rhode Island deserve to have a clear picture of how the state ended up on the hook for the debts of 38 Studios - and who is ultimately responsible for the costs related to this failed business venture. As we learned this week, although the investigation remains open, it is now inactive. We echo the calls of numerous public officials demanding that the Attorney General release all documents and related information pertaining to the investigation so taxpayers may have a clear and more complete story."

SEC charged EDC and Wells Fargo with Fraud in March
Presently, the state is still seeking million of dollars via a civil law suit led by attorney Max Wistow. And, the United States Securities and Exchange Commission has filled fraud charges. In March, the United States Securities and Exchange Commission charged the Rhode Island Economic Development Corporation (now the Rhode Island Commerce Corporation) and its bond underwriter Wells Fargo Securities with defrauding investors in the 38 Studios bond offering.  

The SEC also charged Wells Fargo’s lead banker on the deal, Peter Cannava, and two then-RIEDC executives Keith Stokes and J. Michael Saul with aiding and abetting the fraud. Stokes and Saul agreed to settle the charges without admitting or denying the allegations and must each pay a $25,000 penalty, and are prohibited from any future municipal securities offerings.  The SEC’s litigation continues against Cannava, Wells Fargo, and RIEDC.

“This controversy has been shrouded in secrecy for too long and nothing short of a judicial determination of the legality of releasing the grand jury records will suffice as a true vetting of this question.  The residents of Rhode Island deserve to know why their tax dollars were wasted, and continue to be wasted, on this bad business deal arranged by government insiders and the well-connected,” added Representative Craven.


Leaders, Groups Call for Release of 38 Studios Docs Following Criminal Investigaton

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