"Mr. Carter is a private citizen who should not be involved in this matter".
The SEC said it is investigating financial reporting at Iconix Brand Group of NY, which paid more than $200 million to acquire Rocawear assets but then wrote down the business by $169 million previous year and another $34 million in March.
According to the SEC's application in a federal district court in Manhattan, the government watchdog is probing possible violations of federal securities laws connected with the purchase of Carter's Rocawear apparel brand by Iconix Brand Group Inc. On Feb. 23, 2018, after Carter retained new counsel, the Commission issued a second subpoena for his testimony.
The SEC isn't investigating Jay-Z, whose given name is Shawn Carter, but rather want his testimony as part of questions they have about related financial moves Iconix made.
Carter, who married 22-time Grammy award victor Beyoncé in 2008, is worth an estimated $810 million, according to Forbes.More news: CSK lose to KKR by 6 wickets
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The SEC initially sent a subpoena to Carter in November, and then another one in February, but he did not comply with either one. "The SEC takes its subpoenas very seriously, so you ignore them at your own peril", he said.
Among other things, the SEC said it desires jayz to reveal exactly the worth of their Rocawear trade mark along with also his engagement with all the brand to Iconix after the sale. But in March 2016, Iconix lowered the value of Rocawear by$169 million, according to the SEC.
Carter and business partner Damon "Dame" Dash sold the rights to their urban apparel line Rocawear to Iconix in 2007 for $204 million.
Iconix did not respond to a request for comment Thursday. In Thursday trading, Iconix shares were plunging - which is usually the impact of an SEC investigation into potential shadiness.