The FBI and SEC launched an investigation after investors said they never received verification of their investments, sources told The Wall Street Journal.
Regulators said the Tesla CEO's defense "borders on the ridiculous" in a filing late Monday.
The subpoenas are related to litigation involving alleged asbestos contamination in Johnson & Johnson's Baby Powder product line.
Musk will still keep his title of CEO.
The Tesla CEO tweeted last month he had secured funding to take the company private.
The biotech company Holmes started was once worth $9 billion.
And some firms seem a little embarrassed.
This article originally appeared at TomDispatch.com. To receive TomDispatch in your inbox three times a week, click here
Chinese who invest in Kushner company real estate deals can get green cards.
Burning trillions of dollars for the hyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about.