Ozy Media Founder Carlos Watson Sentenced to Nearly a Decade in Prison for Fraud

The founder of the defunct media and entertainment firm Ozy Media, Carlos Watson, has been sentenced to nearly a decade in prison. The sentencing is for deceiving investors about the company. Prosecutors stated that the former MSNBC host and ex-Goldman Sachs banker had orchestrated a scheme over several years, which resulted in “tens of millions of dollars” in losses for investors. The court heard that Watson and other individuals at Ozy Media falsified information regarding the firm’s finances, its connections with celebrities, and its acquisition prospects to attract investors. Watson continues to deny the allegations and has announced his intention to appeal the verdict. United States District Judge Eric R Komitee sentenced Watson to 116 months in prison. The charges included conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. “Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company”, stated Breon Peace, US Attorney for the Eastern District of New York. He added: “His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness”. Watson will remain free for now on a $3m (£2.3m) bond. He had entered a plea of not guilty but was convicted in July following an eight-week trial. In court, Watson testified that he was a businessman who believed in his company’s mission and had dedicated every effort to making it a success. His lawyer had argued that he was betrayed by his deputies, who had acted independently and concealed their wrongdoing from him. Ozy Media’s decline began in 2021 when a New York Times investigation revealed that one of its executives impersonated a YouTube representative during a call with the investment banking giant Goldman Sachs. Watson attributed the deception to what he described as his deputy’s mental health issues. He also stated that no harm was caused because Goldman Sachs ultimately did not invest. In court filings, prosecutors alleged that Watson was present during the call and provided his deputy with instructions on what to say, despite previously denying his presence to the media. Ozy Media aimed to replicate the early success of digital news media pioneers such as Vice Media and Buzzfeed. It produced left-leaning podcasts, television series, and events, as well as profiles of rising stars and emerging trends. In 2020, its valuation was $159m. The company, which was hit by scandal, announced its closure in October 2021.