Jay-Z Subpoenaed for Refusing to Talk to the Feds

We often hear rappers waxing lyrical about being in the trap house (their mamaโ€™s basement) because the block is hot (the cul de sac in their suburban subdivision), bragging about โ€œthe feds watching,โ€ knowing that no oneโ€™s trying to get them to snitch on the dude that sold them a dime bag of midgrade marijuana.…

We often hear rappers waxing lyrical about being in the trap house (their mamaโ€™s basement) because the block is hot (the cul de sac in their suburban subdivision), bragging about โ€œthe feds watching,โ€ knowing that no oneโ€™s trying to get them to snitch on the dude that sold them a dime bag of midgrade marijuana.

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Trump’s Tariffs Might Stick Around. What Should We Buy Now?
Trump’s Tariffs Might Stick Around. What Should We Buy Now?

But when youโ€™re Shawn Carter, aka Jay-Z, โ€œthe blockโ€ is a sprawling mansion, and โ€œda fedsโ€ who are watching are officials from the federal Securities and Exchange Commission.

According to Bloomberg, Hov has repeatedly refused the SECโ€™s request to discuss the investigation into apparel brand Iconixโ€™s accounting practices and potential violation of federal securities laws.

In 2007, Iconix paid Carter $200 million for his Rocawear label. Iconix licenses brands like Candies, Starter and Joe Boxer to national retailers. At the time, Jay-Zโ€™s brand reported annual sales of $700 million. According to Investopedia, Jay-Z agreed to work with Iconix to help develop the brand after the sale.

In 2016, Iconix wrote down the value of the brand by $169 million and another $34 million this year, according to the SEC. When the SEC began looking into this, the government agency subpoenaed Jigga in November 2017, but he didnโ€™t show up. After retaining new counsel, he ghosted them again in February 2018. Carterโ€™s public position is basically that he has 99 problems, but snitching to government regulators ainโ€™t one.

โ€œWe are aware that the SEC is seeking information on Iconixโ€™s financial reporting,โ€ a representative for Carter told CNBC. โ€œMr. Carter had no role in that reporting or Iconixโ€™s other actions as a public company. Mr. Carter is a private citizen who should not be involved in this matter.โ€

In issuing the third summons, the SEC does not allege that Jay-Z had any involvement with companyโ€™s potential wrongdoings.

In a related story, Beyoncรฉ has never responded to any of my familyโ€™s subpoenas to perform at our Labor Day cookout. However, Dame Dash agreed to stop by for $50 and a fish plate.

We declined.

My aunt Marvellโ€™s block is too hot.

Straight From The Root

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