SEC Ducks Sanctions Over Evidence In $23M Radius MBS Suit

Law360, New York (August 31, 2012, 12:38 PM EDT) -- A Florida federal judge refused Thursday to sanction the U.S. Securities and Exchange Commission for allegedly destroying evidence in its suit alleging Radius Capital Corp.'s CEO tricked Ginnie Mae into guaranteeing $23 million in mortgage-backed securities.

U.S. Magistrate Judge Douglas N. Frazier denied a July 24 sanctions motion by Radius CEO Robert DiGiorgio. The SEC sued DiGiorgio and the company in March 2011, alleging they obtained the guarantees by falsely claiming the underlying loans were insured by the government. Radius never responded to the complaint and...
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