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Lawyer: Talks with rating agencies were after 38 Studios votes

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By Katherine Gregg

PROVIDENCE, R.I. -- Handwritten notes of conversations that House Speaker Gordon D. Fox and Senate President M. Teresa Paiva Weed had in September 2010 about the 38 Studios bonds, with the nation's top bond-rating agencies, came out of a file First Southwest Company turned over to the state's lawyer.

"I got these from First Southwest. And all the defendants have them. I think they speak for themselves,'' said Max Wistow, the lawyer who filed a civil complaint in November against 14 individuals and companies, including First Southwest, which has been -- and remains -- the state's financial adviser.

Asked if the notes indicate that Fox or Paiva Weed knew, when the lawmakers voted In May and June, that $75 million in loan guarantees were earmarked for 38 Studios, Wistow said: "There is no way they tell you that. There is nothing to indicate at the time of the legislation in June, they knew there was any money going to 38 Studios. ...This was a conversation three months later.''

He said the conversations took place "three months after the job-guarantee program established by statute that there would be a moral obligation connected with any bonds issued, and this was six weeks after the EDC board made the final authorization for the bonds for this specific amount ... $75 million.''

Asked about the notes, First Southwest lawyer Mitchell Edwards said: "Because it is in litigation, we have no comment.''

Related: Fox, Paiva Weed lobbied for good rating on 38 Studios bonds


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