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SEC Seeks Court Order To Force Jay Z To Testify In Rocawear Case
Jay-ZBy Rich Thane / CC BY-SA 2.0 via Wikimedia Commons)

SEC Seeks Court Order To Force Jay Z To Testify In Rocawear Case

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NEW YORK (CelebrityAccess) — The Securities and Exchange Commission said Thursday that it’s seeking a court order to compel music mogul Jay-Z to testify in the federal regulator’s investigation into the Iconix Brand Group.

According to the application and supporting papers, which were filed in federal court in the Southern District of New York, the SEC is investigating potential violations of the federal securities laws related to the financial reporting of New York-based Iconix Brand Group, Inc., which paid Shawn “Jay-Z” Carter more than $200 million to acquire assets associated with Carter’s Rocawear apparel brand.

However, 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.

“After the acquisition, Carter and Iconix maintained publicly-disclosed partnerships related to the Rocawear brand,” The SEC said.

On November 16, 2017, the SEC issued a subpoena for Carter to testify in the investigation and according to the SEC, he was slated to testify by February 23, 2018, but has failed to appear. As well, through his counsel, Carter has declined to provide any additional dates on which he will agree to appear, the SEC said.

In a statement provided to CNBC News, attorneys for Mr. Carter said: “We are aware that the SEC is seeking information on Iconix’s financial reporting. Mr. Carter had no role in that reporting or Iconix’s other actions as a public company. Mr. Carter is a private citizen who should not be involved in this matter.”

Shares of Iconix Brand Group were falling more than 7 percent Thursday afternoon following the news.

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