Former Boston Red Sox pitcher Curt Schilling’s 38 Studios have declared chapter 7 Bankruptcy earlier today. Currently an FBI investigation is under way for the game developer for neglecting to pay their employees, according to a report filed by WPRI News.

During the development of Kingdoms of Amalur back in 2010, the development house agreed to a $75 million dollar loan from the state of Rhode Island in order to move its company and its employees to the state to create more jobs. Unfortunately, due to the strain of developing an MMORPG and the poor sales of Kingdoms of Amalur: Reckoning, the developer could not pay a loan back to the state. This set off a chain of events that lead to the closing of Big Huge Games that 38 Studio’s purchased in 2009.

To make matters worse for the employees, 38 Studios have said that they will not repay the mortgages that employees were told they wouldn’t have to pay back for houses still in Massachusetts.

On a positive note, Big Huge Games will be purchased by Epic Games and will hire each employee that was working with the company at the time.

Today, at least for now, the ugly story of 38 Studios has come to an end.