The St. Joe Co. disclosed Monday that staff of the Securities and Exchange Commission is recommending the regulatory agency file an action against the company for alleged securities law violations.
St. Joe moved its offices from Jacksonville to WaterSound in the Florida Panhandle in 2010, but the alleged violations occurred when the real estate developer was still headquartered in Jacksonville.
The company disclosed the possible violations in an SEC filing late Monday, saying it received a notice from the SEC staff Jan. 20. The filing said the possible violations relate to “historical accounting and disclosure practices and real estate asset valuations principally as reflected in the company’s financial results for 2010, 2009 and prior periods.”
The company in January 2011 disclosed the initiation of the investigation by the SEC. In February of that year, CEO Britt Greene and other top St. Joe executives resigned under pressure from the company’s largest shareholder, Bruce Berkowitz of Fairholme Capital Management.
St. Joe said Monday the alleged violations are not directed at any current directors or officers or “any of its controlling shareholders.”
The company said the letter is not a formal allegation of wrongdoing, but it gives the company an opportunity to respond to the issues raised by the SEC staff before further action is taken.
“At this time the company is unable to predict the outcome of the investigation, any potential enforcement actions or any other impact on the company that may arise as a result of such investigation,” Monday’s filing said.
St. Joe last year sold off its 4,057-acre RiverTown community in northern St. Johns County, the company’s last remaining tie to Northeast Florida.
Other than cash from land sales, the company’s principal current asset is about 182,000 acres of land for development mainly between Tallahassee and Destin.
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