St. Joe's Plunging 7% As SEC Steps Up Investigation

The St. Joe Company (NYSE: JOE) is plunging today, down more than 7% after the company disclosed that the SEC has started a formal investigation of the company, as well as chairman Bruce Berkowitz's Fairholme Capital.

The SEC is looking into whether the company on a variety of issues. The issues include securities-law anti-fraud provisions for corporate officers and board members, internal controls and financial reports.

St. Joe has been under much scrutiny since late last year, when at the Value Investing Congress, hedge fund manager David Einhorn said the stock was worth $8-$10 per share, based off the value of the land holdings. St. Joe purchased most of the land in the 1930s and 1940s, and according to Berkowitz, is fairly valued.

At last check, shares were off $1.55 to $19.32, a loss of 7.4% on nearly 600,000 shares.