The rapper and businessman - born Shawn Carter - was issued the subpoena after he failed to testify during an investigation of accounting practices at Iconix, which paid $200 million to buy assets from his apparel brand Rocawear in 2007.
The Wall Street regulator filed the action against Shawn Carter, known artistically as Jay-Z, in federal court in the Southern District of NY as part of an ongoing case investigating the financial reporting of New York-based Iconix Brand Group. A Twitter user, referencing Jay-Z's third subpoena and hit track "99 Problems", tweeted Thursday, "Now, 100 problems". Why he was allowed to ignore it is unclear, but in February of this year, after he had hired a new lawyer, he was subpoenaed again.
Investigators want to ask Carter about his relationship with Iconix, among other things, according to the SEC application for a subpoena enforcement action. It also said that it wants to learn about his other businesses that did business with Iconix along with also his awareness of the wisdom and objective of individuals who realized of trades involving his organizations Jay-Z along with Iconix.
Securities watchdogs are probing whether Iconix had violated trading laws related to financial reporting.
US Judge Paul Gardephe promptly obliged, ruling that the SEC has given sufficient cause to compel Jay-Z to testify. The SEC further said that after the acquisition, both Carter and Iconix "maintained publicly disclosed partnerships related to the Rocawear brand". If Carter does not comply with the subpoena, he may be held in contempt, according to the order.
A representative from Iconix did not immediately respond to CNBC's request for comment. He was later send a second subpoena and failed to appear and declined to provide dates for investigative testimony.
ICON shares fell 7.8% after the bell Thursday.