Representative Sherry Roberts Co-Sponsors Bill to Prevent Rhode Island Taxpayer Payments to 38 Studios Bondholders

In Wake of SEC Charges, Rep. Roberts Joins House Oversight Committee Chairwoman
to Introduce Legislation to Prevent Payments to Bondholders

STATE HOUSE — Representative Sherry Roberts (R-District 29 Coventry, West
Greenwich) has co-sponsored legislation (H 7920) with House Oversight Committee
Chairwoman Karen MacBeth, to propose a ban on making any further state payments to
bondholders of 38 Studios.»

«In the wake of SEC charges, I feel Rhode Island taxpayers should not have to remain
on the hook to pay back millions of dollars, for a deal that was fraudulent,» said
Roberts. «I am with Chairwoman MacBeth, in wanting to protect taxpayers. This
legislation will insure that the Rhode Island Commerce Corporation, the state, and
any subdivisions of the state will not be responsible for making moral obligation
bonds related to the doomed video-game company, 38 studios.»

The SEC’s civil complaint claims Rhode Island’s Economic Development Agency, now
known as the Rhode Island Commerce Corporation, and Wells Fargo Securities made
misleading statements when selling bonds.

Representative Roberts added, «Rhode Islander taxpayers will never be able to move
on from this boondoggle without conducting the proper investigation to prove why our
state is not legally obligated to make these payments.»