Jay-Z Subpoenaed By SEC For Testimony In Fraud Case

Calvin Saunders
May 4, 2018

The rapper and businessman - born Shawn Carter - was issued the subpoena after he failed to testify during an investigation of accounting practices at Iconix, which paid $200 million to buy assets from his apparel brand Rocawear in 2007.

Jay-Z has been subpoenaed - for a third time - by the Securities Exchange Commission (SEC) about an ongoing probe into Iconix Brand Group, NBC News is reporting.

Jay-Z is slated to rap next week - with a federal judge.

The SEC initially sent a subpoena to Carter in November, and then another one in February, but he did not comply with either one.

The SEC's application states that the Commission seeks Carter's testimony to inquire about, among other things, Carter's joint venture with Iconix.

The federal judge in the case, Paul Gardephe, ordered Carter to appear in a Manhattan court on Tuesday to explain why he should not be forced to talk to the SEC.

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Jay-Z's lawyer Alex Spiro protested in a Thursday statement that the rapper "had no role in that reporting or Iconix's other actions as a public company", and that "Mr. Carter is a private citizen who should not be involved in this matter".

The investigation into whether partnerships like the Rocawear purchase "should potentially have been consolidated in the company's historical results" began in late 2015.

Further, according to Market Watch, the SEC notice issued this week does not indicate that Jay-Z is suspected of any wrongdoing.

As of Thursday afternoon, the dates on which Jay-Z will appear in court to testify are unknown.

Simply asserting he does not have relevant information will likely not be enough for Carter to be allowed to ignore the subpoena, Chase said.

A Iconix spokesperson could not be immediately reached for comment. It posted a $557 million loss previous year, while annual revenue fell 7 percent to $226 million.

Other reports by MaliBehiribAe

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