SEC drops accounting fraud case against ex-Iconix CEO

The Securities and Exchange Commission will drop a long-running lawsuit against the founder of apparel licenser Iconix Brand Group that accused him of inflating the company's revenue and earnings more than a decade ago.

The SEC told a federal judge in Manhattan that it voluntarily dismisses the case against Neil Cole, Iconix's former chief executive, according to a filing on Monday. Cole in October was cleared by a federal appeals court of criminal charges in a parallel fraud case.

The SEC said its decision was an exercise of its discretion and "doesn't necessarily reflect the Commission's position on any other case." The agency declined to comment beyond the filing.

Cole is "extremely pleased that the SEC has dismissed the case," said his attorney Sean Hecker.

The SEC in December 2019 sued Cole and two other former executives of the company, which has licensed brands including Ed Hardy and Jay-Z's Rocawear. 

The agency at the time said Cole and the company's former chief operating officer created fictitious revenues to meet or beat Wall Street estimates in 2014. The ex-chief operating officer and another former executive previously settled with the SEC, but Cole fought the allegations.

The agency separately alleged Iconix fraudulently booked revenue and manipulated its earnings in 2014 to conceal distressed finances at two of the brands it licensed. Iconix settled the regulator's allegations for $5.5 million, without admitting or denying the claims. 

A jury found Cole not guilty in 2021 of two counts of conspiracy but deadlocked on eight other counts, resulting in a mistrial. In 2023, he was sentenced to spend 18 months in prison after a second trial, but the October 2025 decision overturned that decision. Cole has consistently denied wrongdoing.

In June 2021, Iconix agreed to be acquired by a unit of Lancer Capital.