AG Peter Kilmartin and former Governor Don Carcieri.
In response to former Assistant Attorney General Tom Dickinson’s request on behalf of GoLocalProv.com for release of the documents relating to the investigation of 38 Studios, the State Police have notified GoLocal that they need to extend the period by 20 days to review the request for documents.
Attorney General Peter Kilmartin’s office is claiming that they may still block the request despite Kilmartin’s pronouncement that no one was guilty of criminal offenses, after his four-year investigation. Kilmartin has also states that the investigation is “inactive.”
More than thirty leading elected officials and civic groups have called for the release of the documents.
GoLocalProv has engaged Dickinson to pursue the release of the documents.
Kilmartin’s Official Response
“This Department maintains records responsive to your APRA request. As this Department has publicly stated, the investigation into the subject-matter of your APRA request remains open, and as such, it is likely that most (and perhaps all) documents responsive to your request will be deemed exempt from public disclosure at this time,” wrote Michael W. Field, Assistant Attorney General in response to GoLocalProv’s request for documents.
“I understand that the Attorney General's staff needs more time to go through the records, but I hope this is not a prelude to complete non-disclosure. We're told that the investigation is inactive, but remains ‘open,” said Dickinson.
“But it's pretty clear from the news conference by Attorney General Kilmartin and Colonel O'Donnell that the grand jury is done and investigators have finished their work, unless something new and significant comes to light," Dickinson added.
The documents which are the focus of the request are the files relating to the interviews of more than 100 interviews that the State Police and Attorney General’s office claim that were conducted. To date, they have refused requests for the names of those interviewed or any of the records or notes from the interviews.
In a letter to Dickinson, the Chief Legal Counsel for the RI Department of Public Safety, Paul Andrews wrote, “The reason for this extension is because this Department must review its records to determine whether any documents it maintains are public records.”
Late on Friday, July 29, Col. O’Donnell and Kilmartin held a press conference to announce that there would be no indictments in the case after a four-year investigation.
“We all share the frustration of 38 Studios,” said Kilmartin in his announcement that there would be no criminal charges. Kilmartin said in his role as Attorney General, he could not be “emotional.”
“To the cynics, no explanation will be sufficient. But at the end of the day, the bottom line is there is not enough evidence to bring charges against anyone. Bad politics, bad public policy, bad business decisions do not always rise to the level of criminal conduct,” said Kilmartin. He then went on to tell a story about what his mother would say to him.
“Not enough evidence or probable cause to bring any charges against anyone,” said Kilmartin during the press conference.
“Of course in any case the Attorney General would be willing to receive new evidence, even long after the case has been closed, so the glimmer of hope that something new might surface is hardly justification for maintaining secrecy. In fact, putting the information out to the public might well be the very thing that sparks some new witness to come forward,” said Dickinson, who served as the number two in the Attorney General’s Office under the leadership of Jeffrey Pine.
“There's just no excuse to deny public access to records that are highly pertinent to one of the most serious financial collapses in Rhode Island history, a collapse that appears to lie at the feet of public officials in two of the three branches of state government," added Dickinson.
During the course of the failed four-year criminal investigation, the State's private attorney Max Wistow has been able to recover funds totaling $16 million and more is expected. In addition, in March of 2016, the United States Securities and Exchange Commission charged a "Rhode Island agency and its bond underwriter Wells Fargo Securities with defrauding investors in the 38 Studios bond offering" on Monday.
"Municipal issuers and underwriters must provide investors with a clear-eyed view of the risks involved in an economic development project being financed through bond offerings,” said Andrew Ceresney, Director of the SEC Enforcement Division, at the time. “We allege that the RIEDC and Wells Fargo knew that 38 Studios needed an additional $25 million to fund the project yet failed to pass that material information along to bond investors, who were denied a complete financial picture.”
‘All of the factors that courts consider in public access cases weigh in favor of disclosure. The issue is one of great public importance given the huge loss to the taxpayers. It's pretty clear that these documents will show whether public servants 'acted negligently or otherwise improperly in the performance of their duties,' factors that both the Rhode Island and U.S. Supreme Courts have said are critical in deciding whether to disclose," said Dickinson.
“And, unlike the recent case involving Caleb Chafee where some privacy interests were considered, 38 Studios is all about public officials acting in their official capacities to expose taxpayers to a massive loss. The public has a right to know what happened, how it happened, and who is responsible," he added.
Kilmartin was a member of the leadership team of Speaker Bill Murphy and Gordon Fox for years. Kilmartin served in the number three position in the leadership. Kilmartin voted for the funding scheme that was designed for 38 Studios and provided the company $75 million dollars in state funding.
Related Slideshow: Leaders, Groups Call for Release of 38 Studios Docs Following Criminal Investigaton
The House Minority Caucus has sent a letter to Chairwoman of the House Committee on Oversight, Representative Patricia A. Serpa, requesting that the Committee reconvene, to subpoena and release to the public, documents related to the 38 Studios investigation.
The letter comes following an announcement by Attorney General Peter Kilmartin and Rhode Island State Police Superintendent Col. Steve O’Donnell, that there would be no criminal charges following the investigation.
Members of the House Minority Caucus believe Rhode Islanders have a right to know all the facts surrounding the 38 Studios investigation, and that Attorney General Kilmartin’s refusal to release these investigatory records is an affront to the hard-working Rhode Island taxpayers who are footing the bill for this misadventure.
Senator Steve Archambault Friday called on Attorney General Peter Kilmartin to seek Court Permission to release the documents stemming from the 38 Studios Investigation. Archambault said, “In order to make sure a debacle like 38 Studios never happens again, we need all the information about how it occurred. Rhode Islanders deserve to know the whole and unvarnished truth . It is only by getting all the facts out that we can learn from our mistakes and make sure this kind of large-scale waste of taxpayers’ money never happens again.”
Archambault said, “The public interest requires the release of these records They can provide a big piece of the puzzle..I call on Attorney General Kilmartin to immediately take all the steps needed to secure their release.”
Rep. Deborah Ruggiero is calling upon Rhode Island Attorney General Peter F. Kilmartin to release documents related to the state’s four-year investigation into the 38 Studios deal, adding her voice to a growing list of state leaders seeking transparency for the probe that ended last week without criminal charges.
“The people of Rhode Island deserve transparency on this investigation,” she wrote in a letter sent Wednesday to Attorney General Kilmartin. She wrote that she understands that, while some parts of the investigation likely are exempt from disclosure laws, the rest should be subject to public scrutiny because “…the people of Rhode Island are entitled to know something about the ‘bad business deal’ of 38 Studios and the four-year investigation. It’s the public’s right to access information; and it’s about open, good government.”
“Other than the fact that some indictments were rendered in the Station Nightclub Fire, how is this different?” she asked in the letter. “Former Attorney General Patrick Lynch recognized the public’s right to know in the Station Fire in order to move the state forward.”
Attorney General Kilmartin and State Police Supt. Col. Steven G. O’Donnell announced last week that, although the investigation will remain open, it is now inactive and no criminal charges are being filed in relation to the state’s 2010 investment of $75 million for loan guarantees to Curt Schilling’s video game development company, which moved to Rhode Island in 2011 and swiftly went bankrupt. The attorney general has declined to release records related to the lengthy investigation.
Former Attorney General called on Governor Raimondo to order Col. Steven O'Donnell to release the RI State Police documents. And, she urged Attorney General Kilmartin to pettion Superior Court to release the grand jury documents. Violet also joined with GoLocal and Governor Raimondo in flagging that Kilmartin should have recused himself considering his close polical alignment with former Speaker Bill Murphy and former Speaker Gordon Fox. Fox oversaw the crafting of the financing scheme for 38 Studios. Kilmartin served in the leadership team with the two and, in fact, voted for the legislation. Violet made these statements during the Friday taping of ABC6's "In the Arena."
House Oversight Chairwoman Patricia Serpa calls on attorney general to release 38 Studios documents:
“Release of these documents would be a public service,” said Representative Serpa. “The people of Rhode Island have a right to know the complete story about the 38 Studios debacle.
The timing of that press conference — 4 o’clock on a Friday afternoon — has left many Rhode Islanders suspicious and concerned,” said Representative Serpa. “This is yet another reason people are skeptical of government. The truth must be exposed and those responsible must be held accountable.”
In a joint statement with Warwick Mayor Scott Avedisian:
"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. 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?"
"100% the documents should be released -- the people have lost confidence in their government leaders and the only way we can do restore it is a full dissemination."
Democratic Candidate for Rhode Island House of Representatives
"The Attorney General is supposed to serve as the "People's Lawyer”. Sadly, Attorney General Kilmartin voted for 38 Studios when he was a State Rep but failed to recuse himself from the investigation. He should have recused himself from the investigation because he was involved and people he knows(friends) were involved. When you consider his involvement in 38 Studios, it becomes very apparent to any observer that the Attorney General not looking out for the interests of the people, he is looking to protect his friends. If there is one thing in this world that Rhode Island needs to see, it is all of the evidence on 38 Studios.
There are surely mountains of evidence of illegal activities by loads of state leaders but he claims there isn't enough!? Why should Rhode Islanders be able to see what evidence there is? We need serious reforms in Rhode Island and we need our elected officials to speak out about corruption and favoritism. We need leadership from Speaker Mattiello but instead all we get is political theater.
I would like to publicly call on Speaker Mattiello to step up and follow the advice of his opponent Steven Frias and “ask the House Oversight Committee to begin a full investigation into 38 Studios and use its subpoena powers to obtain documentation collected by State Police and the R.I. Attorney General related to 38 Studios.”
Chair, Rhode Island Progressive Democrats of America
"Obviously, the records should be released. But the more important point is that Peter Kilmartin has an obvious conflict of interest. The man who did the most to elevate Kilmartin was Bill Murphy, who would be the top target of any real 38 Studios investigation. Kilmartin should have recused himself. Refusing to release the documents looks especially bad because there is a clear political incentive for Kilmartin to conduct a coverup.
One group that has not received enough blame for 38 Studios is the members of the media who did not shine a bright enough light on this corporate welfare deal. Many of the same media figures who are happy to talk about 38 Studios after the fact refuse to cover the massive explosion of corporate welfare following Gina Raimondo's enormous expansion of the very agency that did 38 Studios. Instead of just giving out loans, Rhode Island is now just handing out straight cash to politically connected corporations. It is the media's duty to cover corporate welfare before these deals go south as well as afterwards."
"Rhode Islanders deserve to see all the information; they are paying dearly for this deal that benefitted insiders, but certainly not them. It is little wonder that Rhode Islanders have lost faith in the system. After an investigation that has lasted 4 long years and blockaded the attempts of others to get the truth, the State’s chief law official has asserted that nothing happened in the 38 Studios deal that he can punish.
It is disturbing that he is unwilling to share the information, data, or names with the public. He should not use the Grand Jury as an excuse to withhold the information. He has the ability to waive the ‘confidentiality’ of the Grand Jury proceedings and should do so. This troubling deal will cast a shadow over Rhode Island until transparency and accountability are secured for our citizens."
In a joint statement with Cranston Mayor Allan Fung:
"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. 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?"
"I called upon the State Police and the Attorney General to release any and all information pertaining to 38 Studios. The taxpayers have a right to the complete story."
"I beleive all the records should be released. I agree with Speaker Mattiello - let's see all the records," said the former Governor in a phone interview with GoLocal on Tuesday.
"At a bare minimum, the results of the State Police investigation should be made public. I understand the general reluctance of a prosecutor not to release publicly details of an investigation that has not resulted in criminal charges being brought. Privacy considerations are obviously paramount. But this is not a normal investigation. For example, I understand that every sitting member of the Assembly at the time was interviewed by the State Police. I know I was back in 2013-14. I have no objection to that interview being made public and I would hope no other Assembly member would object to their own interviews being made public. Likewise subpoenaed documents can have key details like SSNs, account numbers etc,. redacted and also made public.
There will never be public trust until the air is clear on this and given my firm belief that the vast majority of elected officials back in 2009-2010, including most (if not all) senior members of Democratic leadership at the time, have nothing to hide we will all be better off if this is done."
"We are dealing with a statewide negative perception of our Government's and it's leaders, the reason, is lack of transparency. We need a more open government to help reestablish trust , and we need to hold those who break this trust accountable for their actions. These records should be released immediately. We can't move forward as a State without accountability. I am also very disappointed in our Governor and her flip flop stance on an independent investigation. If she truly cares about RI and Rhode Islands future she needs to keep her promises to those whom she serves."
Republican Candidate for Rhode Island House of Representatives
"If the State Police or the Attorney General will not disclose this information, the Speaker should ask the House Oversight Committee to begin a full investigation into 38 Studios and use its subpoena powers to obtain documentation collected by State Police and the R.I. Attorney General related to 38 Studios. When it comes to 38 Studios, there will be no closure for Rhode Islanders until they know all the facts and learn exactly what role their elected officials played in this debacle."
“This has been a long and difficult period for Rhode Island, our government and the people of our state. Now that the investigation has concluded, it is time to move on – but not without first fully disclosing the information within those records that were withheld and presented in that investigation. By not doing so, we only continue to allow a cloud of suspicion to remain over our state, to the detriment of all.”
"As Steve Frias requested and Speaker Mattiello and these groups echoed, I believe records of all investigatory proceedings for 38 Studios should be released. The secrecy that is being promoted, in a matter of such great public interest, erodes public trust in the criminal justice system and inhibits the public's ability to seek particular reforms in the way our taxpayer dollars are spent. The clandestine manner in which the case is being handled stands in stark contrast to the transparent handling of grand jury records in other matters such as the Station Nightclub tragedy.
The argument that release of grand jury and investigatory related records would invite scrutiny and embarrassment of individuals is valid but not in a case of this magnitude and length. We can't establish any meaningful reforms to a broken system if we don't find out who put their self interest over the public interest."
Founder Rhode Island Moderate Party and WatchdogRI, former gubernatorial candidate
"The ACLU letter to me made terrific sense, and the AG's position is wrong. Kilmartin should be erring on the side of transparency. I think Speaker's Mattiello's position however is not credible -- he's had the ability through House Oversight all along to pull under subpoena all the info he says he's seeking.
The only time that anything seems get done in Rhode Island is when there's a big outcry - but it's continuing and building I'll say again Rhode Island deserves to understand how it happened and the job of politicians is not to get in way of transparency."
"Sadly, the shallow, single stage thinking that ushered in the era of the epic government failure known as 38 Studios is again present in its final days. Cleverly, in a manner resembling feral animals, the Government Class has created the perfect conundrum: Employ a Grand Jury format, so as to erect yet one more legal barrier to Government transparency, while purporting, OJ Simpson like, to be in pursuit of the truth, so as to cynically inoculate the proceedings from the public eye, forever.
Former Rhode Island Director of Administration, and Founder and Director of the Hassenfeld Institute for Public Leadership
"Releasing all information accumulated investigating the 38 Studios fiasco is a no-brainer. Rhode Island’s elected officials should take all responsible steps to restore confidence of voters in the transparency and integrity of State government. Until the public believes that there has been full-disclosure on 38 Studios a pale of cynicism will hang over Rhode Island. This will continue to have an impact on state officials developing a consensus to move Rhode Island forward in an increasingly competitive economic environment. Failure by the Attorney General, Governor and legislative leadership to insure complete and full disclosure will subject the state to continued and avoidable reputational risks.
As the late Justice Brandeis said over 100 years ago, 'Publicity is justly commended as a remedy for social and industrial disease. Sunshine is said to be the best of disinfectanta.' It is time the politicians let the sun shine on 38 Studios."
CEO, Rhode Island Center for Freedom and Prosperity
"In an outrageous turn of events, the rigged system that favors insiders will not release the names of those officials who acted in an unethical political manner. Once again Rhode Islanders have been denied answers in the 38 Studios affair. After a four year investigation, the public knows nothing more about the corrupt 38 Studios story. For years it has been the position of the Center that the political implications were equally, if not MORE IMPORTANT than any potential criminal implications. For this reason, I renew our call for the Governor to make good on her campaign promise to initiate an independent investigation."
“[T]he disaster known as 38 Studios happened because of a deeply ingrained culture of secrecy in this state. The official state investigation into that disaster should not perpetuate that culture.”
"Regarding the grand jury records, the [ACLU] pointed to two other newsworthy incidents – the Station Fire tragedy and, in 2000, the shooting of off-duty police officer Cornel Young, Jr. – where grand jury records were released. The groups rejected as unpersuasive the arguments that the two law enforcement agencies have given for not following the path taken in the Station Fire investigation in having the records opened."
"The [group] also argued there were compelling reasons for releasing the investigatory records that were gathered by the two agencies outside of the grand jury. Noting that “of the 146 witnesses your agencies interviewed, only 11 were called before the grand jury,” the group stated that there was “thus a wide range of independent information gathered by your agencies that would shed light on this incredibly important incident in Rhode Island history if you publicly released the information – which, under the Access to Public Records Act (APRA), you have the clear right to do.
The letter noted that the State Police recently took that route following two highly publicized incidents – the Cranston parking ticket scandal and the controversial school resource officer “body slam” incident at Tolman High School in Pawtucket. “Surely the public deserves similar access to information about an investigation involving millions of taxpayer dollars,” the letter claimed."
"So let's get this straight. There are no charges after four years of investigation and it is inactive.
But, if we open up the documents, that could somehow jeopardize the integrity of the investigation, which is...closed. And so far has yielded....nothing.
Well, that make sense. About as much sense as voting to give 38 Studios $75 million, or spending four years of time investigating and issuing no charges."
“Our tax dollars are being tossed around like confetti, bailing out million dollar private endeavors with public funding seems par for the course with our current state legislators-enough is enough, we are not your personal ATM’s.
We all deserve to know how 38 Studios played out because this type of irresponsible behavior happens all too often in Rhode Island and history will repeat itself with the current regime of lawmakers that toss around our tax dollars. Representative Canario, I ask you to stop protecting special interests and join the fight that demands answers rather than protecting the people involved in this boondoggle.
We need to “Break the Cycle” of corruption in Rhode Island and it starts with our lawmakers demanding transparency, not supporting secrecy."
