Jay-Z's Got 99 Problems And This SEC Subpoena Might Be One

Jay-Z Receives Investigative Subpoena from the SEC

Jay-Z Receives Investigative Subpoena from the SEC

Music mogul and businessman Jay-Z must explain details of the sale of his clothing line to determine whether it violated federal securities laws, the US Securities and Exchange Commission (SEC) said on Thursday (May 3).

Investigators want to ask Carter about his relationship with Iconix, among other things, according to the SEC application for a subpoena enforcement action.

Although Iconix bought the brand - for a cool $204 million - Jay-Z retains his stake in the company, and he continues to be involved in its marketing, licensing, and product development. After the acquisition, Carter and Iconix maintained publicly-disclosed partnerships related to the Rocawear brand. Carter failed to appear as required by the subpoenas and, through his counsel, has declined to provide any additional dates on which he will agree to appear for investigative testimony, the regulator said.

"Mr Carter is a personal citizen who shouldn't be concerned on this matter".

A representative from Iconix did not immediately respond to CNBC's request for comment.

Iconix, which sells retail brands Candie's and Joe Boxer, has been under SEC investigation since December 2015 over its accounting practices. Bloomberg reports that the agency issued subpoenas calling for Carter's testimony in November and in February, but Carter has reportedly failed to appear before the SEC. That indicates Iconix overvalued the asset.

In March of 2016, Iconix wrote down a massive $169 million related to its Rocawear buyuout. Rocawear was founded in 1999 by Roc-A-Fella Records co-founders Damon "Dame" Dash and Jay-Z.

Carter also once owned a small part (0.15%) of the New Jersey Nets, and helped make them the Brooklyn Nets.

He also co-owns the 40/40 Club sports-bar chain, and is an investor in several other restaurants, including NY hotspot The Spotted Pig.

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