Damon Dash’s stake in Roc-A-Fella Records to be auctioned off by the feds

Damon DashHis financial woes aren’t getting any better… because his entire stake in Roc-A-Fella Records is now being auctioned off by the feds.

According to new legal documents obtained by TMZ… the music mogul, who co-founded Roc-A-Fella with Jay Z and Kareem Burke –his 33.3 percent stake in the company will be sold by the U.S. marshal at a public auction on Aug. 29 in Manhattan.

The documents say bidders will first have to register to appear at the auction by emailing the attorney. Christopher Brown.

Brown, as you know, represents the film director. Josh Webberwho secured a civil judgment of more than $800,000 against Dash for copyright infringement and defamation two years ago.

Webber and Muddy Water Pictures produced “Dear Frank” and filed a lawsuit against Dash after claiming he told people he owned the rights to the film even after he was dropped from the project.

Court documents specify that the purpose of the auction is to collect the judgment. The documents also note that Jay Z’s album “Reasonable Doubt” is the largest asset owned by Roc-A-Fella.

At auction, the minimum bid for Dash shares cannot be less than $1.2 million.

Additionally…the buyer must be able to put down a deposit of 20 percent of the minimum bid ($240,000) at the time of sale.