SEC Subpoenas Jay Z to Testify in Iconix Fraud Investigation

SEC Subpoenas Jay Z to Testify in Iconix Fraud Investigation

Authorities at the U.S. Securities and Exchange Commission (SEC) reportedly issued subpoenas to Jay-Z in November 2017 and again in February, when he hired a new attorney, seeking to speak to the rap mogul over his dealings with Iconix.

The SEC is investigating potential violations of the federal securities laws related to Iconix's financial reporting.

The SEC has been looking more into Iconix financial reporting and in relation to Rocawear, they more than $200 million they paid to acquire "intangible assets" associated with the brand.

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The 99 Issues rapper continued as chief inventive officer of the Rocawear model after its sale and Iconix entered a separate three way partnership with the star as part of the sale to determine manufacturers to be acquired.

"Carter failed to look as required by the subpoenas and... declined to supply any extra dates on which he'll agree to look for investigative testimony", the SEC added. "Mr. Carter is a private citizen who should not be involved in this matter", the statement said. In its Thursday statement announcing the enforcement action, the SEC identified Jay-Z by his given name, Shawn Carter.

Jay must appear on May 8th at 3 PM to provide cause why an order shouldn't be issued for his testimony.

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In 2016, Iconix publicly announced a $169 million write-down of Rocawear (a "write-down" being a reduction in its estimated value), followed by another write-down of $34 million in March of this year. The agency would like to talk to him about, "among other things, Carter's joint ventures with Iconix".

Iconix did not respond to a request for comment Thursday. And just past year, the company triggered another Rocawear write-off to the tune of $34 million.

Court documents list Jay-Z's attorney as Alexander Spiro, who is now representing the artist in a legal dispute with Iconix over the $200 million deal.

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