The United States Securities and Exchange Commission (SEC) opened an investigation of the Falstaff purchase, and found it provided shareholders with false and misleading information. Kalmanovitz was prohibited from committing further securities laws violations and Falstaff stock was barred from trading and removed from the New York Stock Exchange.
The United States Securities and Exchange Commission (SEC) investigated the Falstaff purchase, finding that it misled investors by providing false and misleading information. As a result, Kalmanovitz was barred from future securities law violations, and Falstaff stock was halted from trading on the New York Stock Exchange.