Chafee gives 38 Studios testimony behind closed doors

PROVIDENCE, R.I. (WPRI) — Gov. Lincoln Chafee was one of the more outspoken opponents of the controversial 38 Studios deal while he was running for the state’s top job back in 2010, and on Thursday he was questioned as part of a lawsuit against the failed video game company.

The state is suing the architects of the $75 million loan guarantee to lure Curt Schilling’s company to Rhode Island. Chafee is one of about 60 people being deposed by defense attorneys before the case moves forward.

Two of the 14 defendants, lawyer Antonio Afonso Jr. and his firm, Moses Afonso Ryan, have already settled with Rhode Island, and on Thursday the state received a $4.4 million check from the insurance company representing them.

With interest and excluding money kept in reserve from the original loan, the company’s demise left taxpayers on the hook for approximately $90 million, which is being repaid in increments of approximately $12 million a year through 2020.

Chafee wasn’t in office when the deal was created, but he was as the company crumbled.

“I’m just giving my testimony. The defendants have asked that I do that and that’s why I’m here as requested,” he said.

It’s unknown what Chafee was asked and how he responded since the meeting was held behind closed doors. None of the depositions in the case have been released, and the judge has not yet ruled if they will.

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