Business

Schilling Consultant Violated Lobbying Laws, R.I. Officials Find

Curt Schilling’s failed 38 Studios was at the center of a Rhode Island lobbying violation investigation this year. Tony Avelar/Bloomberg News

An investigation by the Rhode Island Secretary of State’s office has found that a consultant working on behalf of former Red Sox pitcher Curt Schilling’s 38 Studios violated state lobbying laws.

A hearing officer who heard the case for Secretary of State Ralph Mollis delivered the decision to Mollis’s office Friday.

Michael Corso, a politically-connected Rhode Island attorney, signed a $300,000 contract with Schilling’s failed video gaming startup a few years back, which included language saying he would work with government officials. Providence news network WPRI uncovered the document this spring. Though the contract never used the word “lobby,’’ it described activity that most people would probably call lobbying. But Corso never registered as working as a lobbyist on behalf of 38 Studios, as required by Rhode Island state law.

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The finding’s teeth aren’t particularly sharp. Corso , whose 38 Studios contract said it would pay him $300,000. He now has seven days to file lobbying paperwork retroactively or face the per violation penalty for unregistered lobbying: $2,000. Mollis said he will not immediately accept the ruling as he explores the possibility of exploring further fines.

Corso chose not to appear at hearings about the issue and disputes the allegations. According to WPRI’s Tim White, should Mollis accept the finding, Corso plans to appeal.

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In a statement, Mollis said he agreed with the hearing officer’s position that “to suggest that lobbying did not occur in the addition of $75 million dollars would seem unlikely at best.’’ He’s referring to the deal that brought 38 Studios to Rhode Island from Massachusetts, using taxpayer-backed financing. The company went bankrupt a couple of years later, leaving Rhode Island on the hook.

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Schilling skipped hearings about the issue in July due to health issues related to his recovery from cancer. He recently returned to a baseball analyst role with ESPN.

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