Kilmartin says he has no conflict in 38 Studios case

Peter Kilmartin

It's been two years since 38 Studios failed, leaving Rhode Island taxpayers on the hook for more than $75 million.

But the investigation into Curt Schilling's defunct video game company is still unfolding. And if does come before the attorney general's office, can the incumbent look at it fairly?

Peter Kilmartin is running for re-election as Rhode Island attorney general, but as a legislator in 2010, he approved $125 million in loan guarantees. Eventually, $75 million of that went to 38 Studios.

"The vast majority of members voted for a loan program. I was one of those members. No knowledge of 38 Studios," Kilmartin said Friday on taping of "10 News Conference."

As NBC 10 first reported, some in the State House apparently had contact with the video game company long before the loan money got the green light.

Records obtained by the I-Team show former House Speakers Gordon Fox and Bill Murphy apparently signed confidentiality agreements with 38 Studios in October 2009, six months before the deal came to light.

Kilmartin said he and other legislators weren't given the full story before they voted and that he had no inside knowledge.

"The colonel of the state police has actually acknowledged publicly that there is no reason for me to conflict myself out of this case," Kilmartin said.

There were two developments in court this week.

Former Economic Development Corp. head Keith Stokes has backed away from a lawsuit connected to the 38 Studios deal. Stokes was suing lawyers who represented the EDC for malpractice, but voluntarily dropped the suit on Friday.

The larger EDC lawsuit against Stokes and others involved in the deal is still pending.

The judge in the 38 Studios civil lawsuit also ruled this week that certain emails and other communication the EDC had tried to withhold must be turned over to the defendants in the case.