How exactly did Curt's company commit fraud?
A few years back before 38 Studios moved to Rhode Island I saw a study that ranked each state using several factors to determine which ones were the most economically attractive for companies to operate there. Rhode Island was ranked dead last among all 50 states. I assume the RI state government realized this which prompted the Republican governor and a Democrat legislature to make a $50 million bond deal with 38 Studios that offered them major incentives, tax credits, etc if they would relocate to RI. This was a bipartisan effort with only one dissenting vote in the RI legislature.
After all this occurred and 38 Studios relocated to RI, Lincoln Chafee was elected governor. It is well documented that even before he was elected Chafee had major personal beef against Schilling. Even though his predecessor as governor, the Democrat led state legislature as well as the state's Economic Development Corporation all approved of the 38 Studios deal, Chafee was against it from the start. When 38 Studios began to go over budget and ran out of money, Chafee refused to continue funding them.
There is a very detailed article /oped on the entire history of the deal from the NY Times. The writer places pretty much all of the blame on the RI state government for trying to play the role of venture capitalist in their attempt to stimulate economic growth.
PS A few years later Rhode Island still ranks dead last in the business climate rankings.