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By
Reuters
Published
May 4, 2018
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U.S. regulator orders Jay-Z to testify on sale of clothing brand

By
Reuters
Published
May 4, 2018

The U.S. Security and Exchange Commission (SEC) on Thursday ordered music mogul and businessman Jay-Z to explain details of the sale of his clothing line to determine whether it violated federal security laws.


Photo: Rocawear



The regulator wants to question Shawn “Jay-Z” Carter about the $200 million sale of his Rocawear clothing label in 2007 to the Iconix Brand Group, Inc, the SEC said in a statement.
“The Commission seeks Carter’s testimony to inquire about, among other things, Carter’s joint ventures with Iconix,” the SEC said, adding that it had questions about whether federal securities laws were breached.

“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,” a representative for Jay-Z said in a statement to CNBC.

“Mr. Carter is private citizen who should not be involved in this matter,” the statement said.
In November, Carter failed to appear after an initial SEC order. In February, the SEC issued a second subpoena for Carter’s testimony. He declined to appear or provide any dates on which he would be available, the SEC statement said.

Jay-Z continued as chief creative officer of the Rocawear brand after the 2007 sale. Iconix also entered a separate joint venture with the rapper as part of the sale to identify brands to be acquired or developed.

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