Carlos Watson Sentenced to 9 Years for Defrauding Ozy Media Investors
Carlos Watson, the founder of the failed media company Ozy Media, has been sentenced to 116 months (nearly 10 years) in prison for orchestrating a long-running scheme that defrauded investors out of tens of millions of dollars.
Prosecutors revealed that Watson, a former MSNBC host and ex-Goldman Sachs banker, manipulated information about Ozy Media’s finances, celebrity partnerships, and potential acquisitions to lure investors. Despite the conviction, Watson continues to deny the charges and plans to appeal.
The court sentenced Watson for conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. U.S. Attorney Breon Peace stated, “Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company,” emphasizing his contempt for fairness and the rule of law.
Watson, who remains free on a $3 million bond, was convicted in July after an eight-week trial. He maintained his innocence during the trial, arguing that he was betrayed by his deputies, who hid their wrongdoing from him. Watson’s legal team claimed he was unaware of their actions.
The fall of Ozy Media began in 2021 after a New York Times investigation revealed that one of its executives had impersonated a YouTube representative during a call with Goldman Sachs. Watson initially blamed the incident on his deputy’s mental health issues, although prosecutors contended that Watson was present during the call and had directed the deceptive actions.
Ozy Media, which aimed to replicate the success of companies like Vice Media and BuzzFeed, produced podcasts, TV series, and events. At its peak, the company was valued at $159 million, but it shut down in October 2021 following the scandal.