A federal judge has ordered Jay-Z to testify as part of an SEC investigation. The rapper, whose real name is Shawn Carter, must testify next week relating to the decade old sale of his clothing brand.
Apparently, Jay-Z has failed to respond to two SEC subpoenas. The judge noted the SEC investigation has been delayed for 5 months because of his inaction. The ruling came just days after the SEC filed a request for an order seeking to enforce the subpoenas.
The subpoenas were filed in November of last year and February of this year relating to his sale of Rocawear. Jay-Z’s attorneys have argued that his testimony would interfere with his upcoming music tour.
Also, a statement from his spokesperson argued that what he knows is not relevant to the SEC investigation. “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.”
The SEC Investigation
Rocawear was founded in 1999 by Jay-Z and his business partner Damon Dash. The brand sold streetwear and accessories. Back in 2007, Carter sold his clothing brand Rocawear to Iconix Brand Group. The sale was for $204 million. The SEC is investigating whether Iconix violated trading laws related to financial reporting. They want to question Jay-Z about his involvement with the company and its dealings with Rocawear.
Jay-Z will have to testify as to the value of the Rocawear trademark at the time of the sale. It should be noted he did stay on with the brand to oversee product development and marketing.
To learn more about this case or report suspected fraud, contact Jeffrey Newman Law today!