38 Studios - Bankruptcy

A company spokesperson for 38 Studios has announced they have declared bankruptcy, according to the Providence Journal, who also claim police are looking over the situation:

According to statement to The Journal from 38 Studios, "This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available. After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the Company has been unable to find a solution to the current stalemate."
Meanwhile, Col. Steven G. O'Donnell, superintendent of the Rhode Island State Police, says that his agency, the FBI, the U.S. Attorney's office and the Rhode Island attorney general "are working together to investigate activities that have recently come to light at 38 Studios."

More information.

The RI State Police and their crack team of accountants and tax lawyers?

Hmm, smuggling illegal dwarven beer perhaps?

would love to read the court documents if available.