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.”