Radius CEO Can't Shake Suit Over $23M In Uninsured MBS

Law360, New York (March 1, 2012, 3:37 PM EST) -- The CEO of Radius Capital Corp. must face claims that he tricked Ginnie Mae into guaranteeing $23 million in mortgage-backed securities by falsely claiming the underlying loans were insured by the government, a Florida federal judge ruled Thursday.

U.S. District Judge John E. Steele denied Robert DiGiorgio’s motion to dismiss the U.S. Securities and Exchange Commission’s suit. DiGiorgio and Radius made high-interest loans to low-income borrowers in several states, then packaged the loans into MBS that were sold to investors and guaranteed by Ginnie Mae, the...
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