Published: Fri, May 04, 2018
Culture | By Margie Dunn

Rapper Jay-Z Subpoenaed In SEC Probe Into Rocawear Deal

Rapper Jay-Z Subpoenaed In SEC Probe Into Rocawear Deal

According to CNBC, the Securities and Exchange Commission (SEC) has subpoenaed Jay Z to testify in an investigation centered on the Iconix Brand Group.

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.

In a press release issued Thursday, the federal agency noted that the rapper, whose real name is Shawn Carter, has already been subpoenaed twice and failed to answer both of those subpoenas.

Regulators are investigating "potential violations" of federal financial disclosure laws by Iconix, the SEC said in a statement. Mr. Carter has no role in that reporting or Iconix's other actions as a public company. It also said that it wants to learn about his other businesses that did business with Iconix along with also his awareness of the wisdom and goal of individuals who realized of trades involving his organizations Jay-Z along with Iconix. On Feb. 23, 2018, after Carter retained new counsel, the Commission issued a second subpoena for his testimony.

Among other things, the SEC said it desires jayz to reveal exactly the worth of their Rocawear trade mark along with also his engagement with all the brand to Iconix after the sale. A spokesperson for the SEC declined comment and Jay-Z's attorney wasn't immediately available to comment on the szituation.

Carter will have to appear at a hearing on May 8 to argue why the court should not order his testimony. At the time, Rocawear was reported to have annual sales of over $700 million.

The agency wants Jay-Z's testimony in looking at the brand management company's write down of the value of Rocawear by $169 million in March 2016 and an additional $34 million this year.

Lawyers at Sweden's Roschier and SEB firms are seeking more than $500,000 in damages amid allegations suggesting they have yet to be paid in full for representing Jay-Z's S. Carter Enterprises in the deal.

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