Wells Fargo In Trouble with SEC for Selling Video Game Company Bonds

Today, the U.S. Securities and Exchange Commission (SEC) charged a Wells Fargo unit and the Rhode Island Economic Development Corp with civil fraud stemming from a bond offering for 38 Studios, a now-bankrupt video game company. The bond offering was for 38 Studios, and the SEC claimed that the agency defrauded investors in order to finance the startup company, which was founded by former Boston Red Sox pitcher Curt Schilling. The $75 million bond was intended to spur economic development and create jobs, according to the SEC.

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