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Wells Fargo Sued For Being A (Shady) Shill For Curt Schilling

The SEC is not pleased.
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Let this be a lesson to anyone considering being, y'know, not *entirely* forthright about the state of an ex-ball player's video game company you may attempt to raise funds for in the future.

Wells Fargo & Co. and a Rhode Island government agency were sued by a U.S. regulator for allegedly misleading investors about how much money a company led by former Boston Red Sox pitcher Curt Schilling needed to develop a video game. After being hired to find financing for Schilling’s 38 Studios LLC, Wells Fargo failed to disclose that the $50 million raised from a bond offering was at least $25 million short of what the company needed to bring the game to market, the Securities and Exchange Commission said in a statement Monday. The Rhode Island Economic Development Corp. also knew that the bond sale wouldn’t raise enough money for Schilling’s company, the SEC said.

Update: A spokesperson for Wells Fargo Government & Institutional Banking said in a statement: “Wells Fargo disputes the SEC's allegations in connection with the placement of these municipal bonds. We will respond to the specific allegations in the complaint in court.”

Wells Fargo Sued by SEC Over Bond Offering for Curt Schilling [Bloomberg]
Wells Fargo charged with fraud in 38 Studios case [CNBC]


Bonus Watch '15: Wells Fargo Junior Bankers

The youngest members of Team Wells are said to be pleased.