SEC Files Subpoena Enforcement Action vs. 'Jay-Z' Shawn Carter

SEC Files Subpoena Enforcement Action vs. 'Jay-Z' Shawn Carter

Jay-Z may landed in hot water with the SEC after he failed to testify as part of an ongoing investigation into alleged financial reporting violations at Iconix Brand Group Inc (NASDAQ: ICON).

A statement issued with respect to Jay-Z by a few of his agents said the entertainer had no role at its own activities like a business or the fiscal reporting to its Iconix Brand team.

"Mr. Carter is a private citizen who should not be involved in this matter", they add.

The SEC described Jay-Z, whose hits include "99 Problems" and "Empire State of Mind", as an "important witness" who has "defied two lawful subpoenas", failing to show up twice for scheduled testimony.

Lawyers at Sweden's Roschier and SEB firms are seeking more than $500,000 in damages amid allegations suggesting they have yet to be paid in full for representing Jay-Z's S. Carter Enterprises in the deal.

Investigators want to ask Carter about his relationship with Iconix, among other things, according to the SEC application for a subpoena enforcement action. After Jay-Z obtained new counsel, the agency issued a second subpoena, according to an SEC statement.

In 2016, Iconix publicly announced a $169 million write-down of Rocawear (a "write-down" being a reduction in its estimated value), followed by another write-down of $34 million in March of this year.

Carter, who married 22-time Grammy award victor Beyoncé in 2008, is worth an estimated $810 million, according to Forbes.

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.

A representative from Iconix did not immediately respond to CNBC's request for comment. In Thursday trading, Iconix shares were plunging - which is usually the impact of an SEC investigation into potential shadiness.

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