Published: Fri, May 04, 2018
Arts&Culture | By Kristi Paul

Jay-Z subpoenaed by SEC, papers say

Jay-Z subpoenaed by SEC, papers say

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.

Iconix, which sells retail brands Candie's and Joe Boxer, has been under SEC investigation since December 2015 over its accounting practices.

Carter is not the focus of the SEC probe. After Carter retained new counsel in February, 2018, the SEC issued a second subpoena for his testimony which he failed to respond to.

U.S. District Judge Paul Gardephe ordered him to appear in court on Tuesday to show cause why he should not comply with an SEC subpoena ordering a May 11 appearance.

Carter must appear in a Manhattan court room on May 8 to make his case, according to a court document made public Thursday.

The SEC is investigating potential violations of financial reporting of Iconix, a New York-based brand which paid Jay-Z more than $200 million in 2007 to acquire assets of Rocawear.

A statement issued with respect to Jay-Z by a few of his agents said the entertainer had no role at its own activities like a business or the fiscal reporting to its Iconix Brand team. "Mr. Carter is a private citizen who should not be involved in this matter", the statement said. The lawsuit claims that the rapper's deal with New Era to produce baseball hats without the approval of Iconix.

In March 2016, Iconix publicly announced a $169 million write down of Rocawear, and in March of this year, Iconix announced a further write down of $34 million.

A Iconix spokesperson could not be immediately reached for comment.

Jay-Z's court appearance could be set aside if he reaches an agreement with the SEC to answer questions. At the time, Rocawear was reported to have annual sales of over $700 million.

The SEC has been attempting to get Jay-Z to testify since November of past year in connection with its Iconix investigation.

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