*Both Jay-Z and Drake found themselves on the receiving end of enforcement this week, with Jigga in the crosshairs of Wall Street’s top regulator and the NBA calling foul on Drizzy’s language.
Jay-Z is the target of a Securities and Exchange Commission enforcement subpoena after failing to testify as part of its investigation of accounting practices at Iconix Brand Group Inc., which paid $200 million to acquire assets from his Rocawear apparel brand in 2007.
Iconix, which sells retail brands Candie’s and Joe Boxer, has been under SEC investigation since December 2015 over its accounting practices. The agency needs Carter’s testimony after Iconix wrote down the value of Rocawear by $169 million in March 2016 and another $34 million this year, the SEC said.
The SEC initially issued a subpoena for Jay-Z’s testimony in November. In February, after he hired a new legal team, the SEC issued a second subpoena for testimony, according to the statement. But Jay 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, the regulator said.
“We are aware that the SEC is seeking information on Iconix’s financial reporting,” a spokeswoman said in a statement. “Mr. Carter had no role in that reporting or Iconix’ s other actions as a public company. Mr. Carter is a private citizen who should not be involved in this matter.”
In November 2015, the company said it would restate its financial statements over how the New York-based company classified some expenses and how it recognized revenue related to licensing agreements.
Meanwhile, the NBA has had enough of Drake’s salty language of late while cheering on the playoff run of his Toronto Raptors.
The league has officially put the rapper on notice after he reportedly called Cleveland Cavs star Kendrick Perkins a “f***ing p*ssy.” The two had a heated exchange at Air Canada Center this week, with one reporter claiming Drake challenged him to fight.
According to ESPN’s Adrian Wojnarowski, the NBA has issued a warning to Drake about “the use of bad language.” The league’s V.P. of basketball operations, Kiki VanDeWeghe, reportedly spoke with Raptors president Masai Ujiri to help get the point across.
The rapper was pretty quiet during last night’s game against Cleveland, probably because there was nothing to talk trash about. LeBron James and company destroyed the Raptors 128-110 to lead the series 2-0.
Game 3 takes place on Saturday, May 5, at 8:30 EST.
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