The legendary hip-hop star has been ordered to appear in Manhattan Federal Court next week to show why he shouldn’t have to give testimony to the regulatory agency in regard to his $200 million sale of his Rocawear apparel brand to Iconix Brand Group in 2007.
The SEC said it is investigating whether Iconix — a company that buys the license to famous apparel lines — violated federal securities laws related to its financial reporting on Rocawear.
In March 2016, Iconix announced that it was taking a $169 million write-down on Rocawear. And in March of this year, Iconix said it was taking another $34 million write-down on Jay-Z’s brand.
Judge Paul Gardephe said in an order on Thursday that the commission has provided sufficient cause to compel Jay-Z — whose real name is Shawn Carter — to sit for the testimony.
The SEC said it issued subpoenas to Jay-Z in November and, again, in February. Both times he failed to appear.
“Carter failed to appear as required by the subpoenas and, through his counsel, Carter has declined to provide any additional dates on which he will agree to appear for investigative testimony,” the agency said in a statement.