SEC Subpoenas Jay-Z in Iconix Investigation

SEC Subpoenas Jay-Z in Iconix Investigation

The company allegedly paid JAY-Z over $200 million to acquire assets affiliated with the Rocawear apparel brand.

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.

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.

U.S. Judge Paul Gardephe has ordered Jay-Z to appear in court on Tuesday, May 8, to explain why he should not testify.

A representative on behalf of Jay says in a statement to ABC News, "We are aware that the SEC is seeking information on Iconix's financial reporting". This isn't even the first time he was subpoenaed over this, having been hit with the first one in November of previous year, and after obtaining new council, didn't appear in court as required, and has not given any additional dates that he'd agree to testify.

For its part, the SEC said that its efforts to subpoena Carter do not mean it is suggesting he or his staff have violated any securities laws, however it feels he might have useful information to help them understand the inner workings of the Iconix business.

Jay allegedly ignored both subpoenas.

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This isn't the first subpoena that the SEC has served Carter.

What Does Jay-Z Have To Do With This?

However, they are still interested in hearing him discuss his "joint ventures with Iconix" that he entered into with the company after the Rocawear sale, when he was still a creative consultant for the brand.

"In addition, we have received a formal order of investigation from the SEC".

According to the SEC, a subpoena for the artist's testimony was originally issued on November 16.

Jay-Z has been told to appear in court next week in connection with a Securities and Exchange Commission investigation of a brand management company he's been involved with in partnerships.

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

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