Published: Feb 14, 2011 5:39 PM EST
Updated: Feb 14, 2011 2:45 PM EST

MIDDLETOWN, R.I. (AP) - A Georgia-based Navy contractor has laid off its entire staff after federal prosecutors in Rhode Island accused its founder of participating in a $10 million kickback and bribery scheme.

 Wayne King, acting CEO of Roswell, Ga.-based Advanced Solutions for Tomorrow, tells WPRI-TV in Providence that the layoffs go into effect Monday. King told workers in an e-mail the company's assets had been frozen and it could no longer operate.

The firm has offices in Middletown, R.I.

A spokesman for Gov. Lincoln Chafee says he's asked the state Economic Development Corp. to determine whether there will be a ripple effect from the closure on the state's other defense contractors. He also asked the Department of Labor and Training to recommend help for displaced workers.

It's unclear how many employees are affected.

 (Copyright 2011 by The Associated Press. All Rights Reserved.)