The Securities and Change Fee (SEC) mentioned it needed to query the musician, whose actual identify is Shawn Corey Carter, concerning the $200m take care of model administration agency Iconix Model Group Inc in 2007.
Iconix paid Carter more than $200 million to acquire "intangible assets" associated with his Rocawear apparel brand. When Carter struck the deal with Iconix, Rocawear was bringing in more than $700 million in revenue a year.
The SEC says they first issued a subpoena for the "4:44" artist's testimony in November of 2017, followed by a second subpoena for Jay's testimony in February of this year after he retained new counsel.
Regulators are investigating "potential violations" of federal financial disclosure laws by Iconix, the SEC said in a statement.
"After the acquisition, Carter and Iconix maintained publicly-disclosed partnerships related to the Rocawear brand", the SEC stated, but so far Hov has failed to appear to testify about his business relationship with Iconix.
"Mr Carter is a personal citizen who shouldn't be concerned on this matter".
In a statement issued through Jay-Z's attorneys, a representative said he was outside the scope of the SEC inquiry.More news: Inhofe optimistic North Korea will denuclearize
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The SEC is looking ask about his joint ventures with Iconix, among other things.
Carter must appear in a Manhattan court room on May 8 to make his case, according to a court document made public Thursday.
A NY judge says Jay-Z must explain why he's dodging a subpoena rather than answering questions related to a probe of a consumer brand company.
The SEC said Thursday that its efforts to force Carter to testify in the probe do "not reflect a determination by the SEC" that he violated federal law, the agency said.
Iconix lawyers didn't immediately return emails seeking comment.
In March of 2016, Iconix wrote down a massive $169 million related to its Rocawear buyuout.