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US securities watchdog orders rapper Jay-Z to testify on clothes model sale, Entertainment News & Top Stories

WASHINGTON (REUTERS) – Music mogul and businessman Jay-Z should clarify particulars of the sale of his clothes line to find out whether or not it violated federal securities legal guidelines, the US Securities and Exchange Commission (SEC) mentioned on Thursday (May three).

The SEC mentioned it needs to query Jay-Z, initially named Shawn Corey Carter, concerning the US$200 million (S$260 million) sale of his Rocawear clothes label in 2007 to the Iconix Brand Group.

“The Commission seeks Carter’s testimony to inquire about, among other things, Carter’s joint ventures with Iconix,” the SEC mentioned, including that it had questions on whether or not federal securities legal guidelines have been breached.

Hours later, a Scandinavian regulation agency and a monetary establishment filed a lawsuit towards the rapper over charges incurred through the buy of Tidal, a digital music service he co-owns together with his spouse Beyonce and two different star singers, Rihanna and Madonna.

The lawsuit claims that Jay-Z’s father or mother company, S. Carter Enterprises, employed the corporations in 2015 to help within the buy of the subscription service’s proprietor, the Swedish company Aspiro AB.

A steadiness of US$598,383.00 remains to be excellent after he made a partial fee.

“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 consultant for Jay-Z mentioned in an announcement to CNBC.

“Mr Carter is private citizen who should not be involved in this matter,” the assertion mentioned.

In November, the rapper failed to look after an preliminary SEC order. In February, the SEC issued a second subpoena for his testimony. He declined to look or present any dates on which he could be out there, the SEC assertion mentioned.

Jay-Z continued as chief artistic officer of the Rocawear model after the 2007 sale. Iconix additionally entered a separate three way partnership with the rapper as a part of the sale to determine manufacturers to be acquired or developed.

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