Z Subpoenaed by Securities and Exchange Commission in Iconix investigation

Jay-Z Receives Investigative Subpoena from the SEC

Jay-Z Receives Investigative Subpoena from the SEC

On Thursday the SEC filed a subpoena for Shawn 'Jay-Z' Carter to testify about the more than $200M Iconix paid to acquire his fashion brand, Rocawear.

In 2007, Iconix Brand Group, a "brand management company" that licenses brands to retailers and manufacturers in the clothing and footwear industries, bought out Rocawear. It says in court papers it's investigating Iconix to learn if federal securities laws were violated when the company reported financial results. The SEC further said that after the acquisition, both Carter and Iconix "maintained publicly disclosed partnerships related to the Rocawear brand". The statement said the singer is a private citizen "who should not be involved in this matter". On Feb. 23, 2018, after Carter retained new counsel, the Commission issued a second subpoena for his testimony. This most recent filing claims that he still hasn't provided the commission with availability dates for a court appearance, with the representative's statement above clearly explaining why he hasn't.

The news comes one day after Jay-Z's announcement of his forthcoming Roc Nation TV production division.

Hip-hop superstar Jay-Z has been summoned to a NY federal court to answer questions related to the 2007 sale of his Rocawear clothing brand.

The SEC said it is probing Iconix for possible financial reporting violations.

The SEC said it asked a federal judge to step in after Carter ignored two subpoenas requesting his testimony.

Carter, who married 22-time Grammy award victor Beyoncé in 2008, is worth an estimated $810 million, according to Forbes. 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.

Iconix has yet to comment or respond to Investopedia's inquiry surrounding the subpoena.

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