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SEC subpoenas JAY-Z in accounting fraud investigation

Iconix Brand Group, which acquired JAY-Z's Rocawear clothing company, is being looked at for investigating potential violations of the federal securities laws

JAY-Z, photo by Amy Price
JAY-Z, photo by Amy Price
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    The Securities and Exchange Commission has issued a subpoenaed against JAY-Z in an effort to obtain testimony from the hip-hop mogul over his involvement in a business transaction with Iconix Brand Group, according to CNBC.

    The SEC is reportedly investigating potential violations of the federal securities laws related to Iconix’s financial reporting.

    JAY-Z sold his apparel brand Rocawear to Iconix in 2007 for more than $200 million, though he continues to maintain a publicly-disclosed partnership with Iconix. Since 2017, the SEC has sought to interview JAY-Z about his relationship with the company. He was initially subpoenaed in November 2017, and again in February 2018, but thus far JAY-Z has failed to appear in court.

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    As the SEC noted in its statement, a subpoena “does not reflect a determination by the SEC or its staff that Carter violated provisions of the federal securities law at issue in the investigation.”

    In their own statement, a representative for JAY-Z told CNBC, “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.”

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