Watch CBSN Live

Jay-Z faces subpoena for not cooperating with SEC probe

Hip-hop star Jay-Z has some explaining to do, according to the Securities and Exchange Commission.

The rapper, whose given name is Shawn Carter, failed to testify as part of an SEC investigation into the accounting practices of Iconix Brand Group, which paid $200 million to buy assets from his Rocawear clothing brand in 2007.

The agency wants Jay-Z's testimony in looking at the brand management company's write down of the value of Rocawear by $169 million in March 2016 and an additional $34 million this year.

The SEC first issued a subpoena for the entertainer's testimony in November. After Jay-Z obtained new counsel, the agency issued a second subpoena, according to an SEC statement

Jay-Z is not accused of wrongdoing, other than failing to appear as required by subpoenas, and has not offered any dates on which he would agree to testify, the regulator said.

"We are aware that the SEC is seeking information on Iconix's financial reporting," a spokesperson for Jay-Z said in an emailed statement. "Mr. Carter had no role in that reporting or Iconix's other actions as a public company. Mr. Carter is a private citizen and should not be involved in this matter."

The SEC began looking into Iconix's accounting practices in December 2015. The company, whose retail brands include Joe Boxer and Candie's, did not immediately respond to requests for comment.

View CBS News In
CBS News App Open
Chrome Safari Continue