ETF News

UPDATE 1-SEC launches investigation into St. Joe

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July 1 (Reuters) - St Joe Co said on Friday the U.S. Securities and Exchange Commission (SEC) was probing the real estate development company and it’s chairman Bruce Berkowitz.

In January, the company disclosed that the SEC was conducting an informal inquiry into its policies relating to impairment of investment in real estate assets.

The company said it got a notice from the SEC on June 24 that it has issued a related order of private investigation.

The investigation covers a variety of matters including anti-fraud provisions of the Federal securities laws, and compliance by holders of more than 5 percent of the company’s stock with their reporting obligations under the agency’s rules.

Berkowitz is the head of its largest investor, mutual fund company Fairholme Funds Inc and was appointed St Joe Co’s chairman in March.

The SEC is also probing the company’s internal controls, books and records, communications with auditors and financial reports.

“The order designates officers of the SEC to take the testimony of the company and third parties with respect to any or all of these matters,” St. Joe said in the filing, adding that it was cooperating with the SEC. (Reporting by Abhishek Takle in Bangalore; Editing by Yoko Nishikawa)