SEC Sues Fla. Co. Over $23M In Uninsured Mortgages

Law360, New York (March 7, 2011, 5:46 PM EST) -- The U.S. Securities and Exchange Commission accused Radius Capital Corp. in Florida federal court Monday of lying to Ginnie Mae about the health of its mortgages in order to get the government corporation to guarantee $23 million in mortgage-backed securities it issued.

In a complaint filed in the U.S. District Court for the Middle District of Florida, federal regulators said Radius and CEO Robert DiGiorgio assured Ginnie Mae and investors that the loans backing the securities were insured by the Federal Housing Administration, when in fact...
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