The SEC has begun a “formal investigation of St. Joe Co., Northern Florida’s largest landowner, and Chairman Bruce Berkowitz, its biggest shareholder,” Bloomberg reports.
The probe is focusing on several matters “including antifraud provisions of federal securities laws and issues related to compliance in reporting public information by St. Joe stockholders who own more than a 5% share in the company,” the WSJ said.
UPDATE: The WSJ emphasised that Berkowitz is not being scrutinized in the anti-fraud part of the probe.
The order from the SEC allows the agency to interview and subpoena St.Joe representatives and connected parties, an SEC filing by St.Joe said.
Last year, hedge fund manager David Einhorn slammed St. Joe and accused it of “failing to write down the value of its developments after the Florida real estate crash,” sending the stock tumbling.