The Securities and Exchange Commission is investigating a $75 million investment by Rhode Island Economic Development in former Red Sox pitcher Curt Schilling's failed gaming company, Bloomberg reported Wednesday.

The Rhode Island agency sold municipal bonds to induce Schilling to relocate 38 Studios from Massachusetts to Providence in 2010. The company declared bankruptcy in 2012, leaving taxpayers on the hook to repay the bonds.

The agency is suing 38 Studios, alleging that Schilling conspired with financial advisors to persuade the state to grant the loan while knowing the funds would not be enough to finish development of a game.

Bloomberg said the SEC declined to comment on the investigation.

Click here to read the full story on Bloomberg.