Jay-Z is in hot water with Wall Street’s top regulator.
The hip-hop mogul is the target of a Securities and Exchange Commission enforcement action for failing to testify as part of an investigation into Iconix Brand Group Inc., which paid $200 million to acquire assets from his Rocawear apparel brand. In its Thursday statement announcing the enforcement action, the SEC identified Jay-Z by his given name, Shawn Carter.
The SEC initially issued a subpoena for Carter’s testimony in November. In February, after he retained new counsel, the SEC issued a second subpoena for testimony, according to the statement. Carter failed to appear as required by the subpoenas and, through his counsel, has declined to provide any additional dates on which he will agree to appear for investigative testimony, the regulator said.
The SEC said it is probing Iconix for possible financial reporting violations.