FILE-In this Oct. 25, 2007, file photo, Boston Red Sox's Curt Schilling pitches against the Colorado Rockies in Game 2 of the baseball World Series at Fenway Park in Boston. Schilling has dabbled in politics, World War II history and raised millions for Lou Gehrig's disease, but it's a gamble on his video game company 38 studios that is in danger of failing and possibly leaving Rhode Island taxpayers with the tab on a $75 million loan guarantee that lured the firm from Massachusetts in 2010. (AP Photo/Kathy Willens, File)
FILE-In this Oct. 25, 2007, file photo, Boston Red Sox's Curt Schilling pitches against the Colorado Rockies in Game 2 of the baseball World Series at Fenway Park in Boston. Schilling has dabbled in politics, World War II history and raised millions for Lou Gehrig's disease, but it's a gamble on his video game company 38 studios that is in danger of failing and possibly leaving Rhode Island taxpayers with the tab on a $75 million loan guarantee that lured the firm from Massachusetts in 2010. (AP Photo/Kathy Willens, File)
FILE - In this Wednesday, May 16, 2012, file photo, former Boston Red Sox pitcher Curt Schilling, center, is followed by members of the media as he departs the Rhode Island Economic Development Corporation headquarters, in Providence, R.I. Schilling's troubled video gaming company filed for bankruptcy in Delaware, on Thursday, June 7, 2012.. (AP Photo/Steven Senne, File)
PROVIDENCE, R.I. (AP) ? The federal and state probes into former Red Sox pitcher Curt Schilling's video gaming company, which filed for bankruptcy protection this week, extend to all the firm's financial transactions, the head of the Rhode Island state police said Friday.
Col. Steven O'Donnell said state police, the state attorney general, the U.S. attorney in Rhode Island and the FBI are conducting the investigation into 38 Studios. He didn't elaborate.
The U.S. attorney's office confirmed the investigation but would not provide details.
The Providence-based company, along with a sister operation in Baltimore, filed for bankruptcy Thursday in Delaware.
The parent firm owes $150.7 million and listed its assets at $21.7 million, according to court filings. 38 Studios Baltimore owes more than $121.4 million and has assets of more than $335,000, the filings show.
In both filings, the company lists its biggest liability as $115.9 million in debt from bonds backed by the state, interest on the bonds and fees to Rhode Island.
Schilling, who also pitched for Baltimore, Houston, Philadelphia and Arizona and won the World Series three times, owns 83 percent of the company, according to the filings.
38 Studios moved to Providence from Massachusetts in 2010 after the state's economic development agency approved a $75 million loan guarantee that was supposed to lead to hundreds of jobs and millions of dollars in tax revenue.
Now, with the firm's bankruptcy filing, state officials are trying to determine how much taxpayers might be on the hook for.
Gov. Lincoln Chafee, who vigorously opposed the loan guarantee on the campaign trail, said Thursday he would do everything possible to salvage what he could of the state's investment.
"If there's a penny that we can get, or a nickel or a dime, we'll get it," he said.
In a statement, 38 Studios said it tried for weeks to find a way to stay afloat but concluded bankruptcy was the only option.
"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," the statement said.
A message seeking comment was left for Schilling on Friday.
Last month, the company laid off nearly 300 employees in Providence and more in Maryland. The move came after it was more than two weeks late on a $1.1 million payment to the state.
38 Studios has been seeking millions of dollars in tax credits from Rhode Island as it struggled to stay solvent, a request that led to accusations the company was looking for a bailout.
As a condition of the loan guarantee, 38 Studios granted Rhode Island a security interest in all its assets.
Chafee said Thursday that the filing wasn't a surprise. The state recently selected an outside auditor to review the finances of Schilling's company. Chafee had indicated he didn't want to give the company any more public support at the risk of throwing "good money after bad." Instead, the state tried to help find private investment.
"We helped as much as we could," he said.
38 Studios owes at least $2.5 million to employees in Rhode Island and Maryland and $322,000 in federal and state taxes, including $39,000 to Rhode Island, according to the bankruptcy filings.
It owes fantasy writer R.A. Salvatore, who helped develop Schilling's first game, "Kingdoms of Amalur: Reckoning," more than $1.7 million. The game came out to strong reviews in February; Schilling said it beat sales expectations, but Chafee has called it a "flop."
The parent company listed no income from its business operations from Jan. 1, 2010, through May 31 of this year. The Baltimore company listed $22 million in income under a "work for hire agreement" with Electronic Arts Publishing, which published "Kingdoms of Amalur," and $635,000 in royalties during the same period.
Schilling wasn't drawing a salary, the filings show. The bankruptcy filing names Schilling as a co-debtor and lists two personal guarantees he made on credit lines totaling more than $3.5 million.
Chief Executive Officer Jen MacLean was paid $253,000 a year, while President and Chief Operating Officer William Thomas made about $200,000.
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Associated Press writer David Klepper contributed to this report.
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