SEC Charges Both RI & Wells Fargo with Fraud in Issuing 38 Studios Bonds – Should We Stop Repaying the Bonds?


An interesting development on Monday when the U.S. Securities and Exchange Commission charged the R.I. Economic Development Corporation (now apparently trying to pretend, via a name change to the “Commerce Corporation”, that it is no longer in existence) and Wells Fargo with fraud by

making materially misleading statements when they sold the bonds used to fund the deal.

Doesn’t that further erode the case to repay these bonds, as though the fact that they were much higher paying moral obligation bonds isn’t enough? (The Chair of the House Oversight Committee, Karen MacBeth, sure thinks so.)