The SEC Subpoenas Jay-Z Over Rocawear Sale to Iconix

Jay-Z — 21

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

According to reports, the Securities and Exchange Commission (SEC) said it is seeking a court order that would require Jay-Z, whose government name is Sean Carter, to cooperate by issuing him a subpoena forcing him to testify in a case they are investigating. A Twitter user, referencing Jay-Z's third subpoena and hit track "99 Problems", tweeted Thursday, "Now, 100 problems".

Jay-Z has also been ordered to appear in federal court next week to explain why he shouldn't be ordered to testify in the SEC investigation.

A U.S. District Court judge in NY has instructed Jay-Z to appear on May 8 at 3 p.m.to show cause why an order shouldn't be issued for his testimony. But in March 2016, Iconix lowered the value of Rocawear by$169 million, according to the SEC. After the acquisition, Carter and Iconix maintained publicly-disclosed partnerships related to the Rocawear brand.

So Jay-Z Has Ignored Two Subpoenas Before - How Is That A Thing? Carter failed to appear as required by the subpoenas and, through his counsel, Carter has declined to provide any additional dates on which he will agree to appear for investigative testimony. The interview "may prove that Mr. Carter does not have relevant information, but that is not a basis for not complying", he said.

Jay-Z has wide-ranging business affairs, stretching from Tidal (a streaming service that has issued equity to other artists) to sports management to brand endeavors, but the SEC is interested in his relationship with Iconix Brand Group, a public apparel company.

Iconix attorneys failed to immediately return e mails seeking comment. In Thursday trading, Iconix shares were plunging - which is usually the impact of an SEC investigation into potential shadiness.

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