SEC Subpoenas Jay-Z in Iconix Investigation

Posted May 04, 2018

"We are aware that the SEC is seeking information on Iconix's financial reporting", a representative for Carter told CNBC. "The SEC takes its subpoenas very seriously, so you ignore them at your own peril", he said.

The SEC initially issued a subpoena for Carter's testimony in November.

Investigators want to ask Carter about his relationship with Iconix, among other things, according to the SEC application for a subpoena enforcement action. But in March 2016, the company announced a $169 million write-down of Rocawear, followed by a $34 million write down in March of this year, the SEC said.

The hip hop mogul born Shawn Carter, who just announced plans for a six-part documentary series examining Meek Mill and flaws in the criminal justice system, has been issued an investigative subpoena. According to the SEC, his lawyers did not provide any dates when he would be available to testify. It said it's investigating in case national regulations were violated while the company reported benefits, including approximately its Rocawear-related belongings Iconix to learn. 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. "The SEC doesn't typically back down". That judge has now ordered the rapper to appear in Manhattan Federal Court to disclose details stemming from a suspicious $200 million acquisition by Iconix Brand Group in 2007.

Iconix has yet to comment or respond to Investopedia's inquiry surrounding the subpoena.

The company, which began 40 years ago as the shoe company Candie's, has grown to include more than two dozen American brands, including Danskin, Umbro and London Fog that the company licenses to mainstream retailers. Shares for the company are down almost 7% in trade today after this news.