SEC Subpoenas Jay-Z in Iconix Investigation

SEC Subpoenas Jay-Z in Iconix Investigation

SEC Subpoenas Jay-Z in Iconix Investigation

The SEC is now investigating potential violations of the federal securities laws related to financial reporting of Iconix Brand Group, Inc., which licenses brands to apparel, footwear and apparel accessory retailers and manufacturers, according to documents filed in federal court.

Carter and business partner Damon "Dame" Dash sold the rights to their urban apparel line Rocawear to Iconix in 2007 for $204 million.

Why, specifically, the SEC is investigating Iconix is unclear, but according to a companion CNBC report, there are concerns about the company's financial reporting.

The SEC, a Wall Street watchdog agency, wants Carter to testify as a part of the probe, but Carter has been M.I.A.

The initial SEC subpoena came in November, while the agency issued a second subpoena in February after the hip-hop mogul retained new counsel.

The rapper's lawyer, Alex Spiro, has not mentioned a reason why the SEC wanted to talk to Jay-Z.

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A U.S. District Court judge in NY has instructed Jay-Z to appear on May 8 at 3 show cause why an order shouldn't be issued for his testimony.

A statement issued on behalf of Jay-Z by one of his representatives said the entertainer had no role in the financial reporting for the Iconix Brand Group or its other actions as a public company.

"Mr Carter is a personal citizen who shouldn't be concerned on this matter". The lawsuit claims that the rapper's deal with New Era to produce baseball hats without the approval of Iconix.

The dates on which Jay-Z will appear in court to testify are unknown, as of Thursday afternoon.

So far neither Iconix or JAY-Z has released a statement.

Iconix attorneys failed to immediately return e mails seeking comment. The case relates to the $169 million write-down of Rocawear in March 2016, and again earlier this year, when Iconix chiefs announced they were taking another $34 million off the market value of the asset. At the time, Rocawear was reported to have annual sales of over $700 million.

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