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.