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 acquisition, discovering it had provided shareholders with false and misleading information. This led to sanctions against Kalmanovitz and the removal of Falstaff stock from the New York Stock Exchange.