The Securities and Exchange Commission is seeking testimony from Carter, however, surrounding the sale of Rocawear, his former clothing label, to Iconix Brand, (ICON) in 2007. The "99 Problems" hitmaker sold the apparel company to bosses at Iconix Brand Group for $200 million over a decade ago, but they reportedly remained in business together on a number of joint projects.
"After the acquisition, Carter and Iconix maintained publicly disclosed partnerships related to the Rocawear brand", said the SEC.
"Mr Carter is a personal citizen who shouldn't be concerned on this matter". The agency said its first subpoena for him was issued last November 17, and then a second was issued after Carter retained a new lawyer in February. This most recent filing claims that he still hasn't provided the commission with availability dates for a court appearance, with the representative's statement above clearly explaining why he hasn't. In its Thursday statement announcing the enforcement action, the SEC identified Jay-Z by his given name, Shawn Carter. However, "The application does not reflect a determination by the SEC or its staff that Carter has violated provisions of the federal securities laws at issue in the investigation", it says.
Carter will have to appear at a hearing on May 8 to argue why the court should not order his testimony.
The SEC said it is probing Iconix for possible financial reporting violations. And just previous year, the company triggered another Rocawear write-off to the tune of $34 million.
According to the release, in 2016 Iconix publicly announced a $169 million write down of Rocawear, and in March of this year, Iconix announced a further write down of $34 million.
Iconix did not respond to a request for comment Thursday.
The news comes one day after Jay-Z's announcement of his forthcoming Roc Nation TV production division.