Today's Hard|Forum Post
Today's Hard|Forum Post

Tuesday March 08, 2016

SEC Charges Wells Fargo With Fraud in 38 Studios Bond Offering

I can't believe we are still hearing about this case. I wonder what took the Securities and Exchange Commission so long to bring charges against Wells Fargo?

The Securities and Exchange Commission today charged a Rhode Island agency and its bond underwriter Wells Fargo Securities with defrauding investors in a municipal bond offering to finance startup video game company 38 Studios. The Rhode Island Economic Development Corporation (RIEDC, now called the Rhode Island Commerce Corporation) issued $75 million in bonds for the 38 Studios project as part of a state government program intended to spur economic development and increase employment opportunities by loaning bond proceeds to private companies.

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