On July 15, U.S. District Judge John Steele of the Middle District of Florida granted in part a motion to dismiss the SEC’s claims against now-defunct Radius Capital and its former CEO, Robert DiGiorgio. The SEC alleges misrepresentations in connection with $23 million in mortgage-backed securities issued in 2005 and 2006. Judge Steel held that the SEC’s civil claims relating to securities issued before March 2006 were untimely when brought by the SEC in March of 2011. Decision.
Radius Capital
SEC Charges Mortgage Company and Its President/CEO with Fraud
On March 7, 2011, the SEC filed a complaint against Radius Capital Corporation and its president and CEO, Robert A. DiGiorgio in the US District Court for the Middle District of Florida. The complaint alleges that the defendants falsely represented to investors and Ginnie Mae that the residential loans underlying RMBS it issued were or would be insured by the FHA. The SEC alleges that 70% the loans were not FHA-insured and could not be FHA insured because they failed to meet the FHA’s minimum requirements. The SEC alleges violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and SEC Rule 10b-5. Complaint.