Ozy Media boss gets nearly 10 years in prison for fraud

Ozy Media founder Carlos Watson has been sentenced to nearly a decade in prison for lying about his once-trendy startup in order to attract investors.

Prosecutors said the former Goldman Sachs banker and former MSNBC host orchestrated a years-long scheme that resulted in tens of millions of dollars in losses for investors.

The court was told that Watson and others at Ozy Media falsified information about the company’s finances, relationships with celebrities and takeover prospects to attract investors.

Watson continues to deny the allegations and says he intends to appeal the ruling.

U.S. District Judge Eric R. Cometti sentenced Watson to 116 months in prison on charges of conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft.

“Carlos Watson orchestrated an audacious, years-long scheme to defraud investors and lenders of his company,” said Brion Pace, US Attorney for the Eastern District of New York.

He added, “His persistent and deliberate lies demonstrated not only his shameless disregard for the rule of law, but also his contempt for the values ​​of honesty and fairness.”

Watson will remain free for the time being on a $3m (£2.3m) bond.

He pleaded not guilty but was convicted in July after an eight-week trial.

In court, Watson said he was a businessman who believed in what his company was doing, and had put every effort into trying to make it successful.

His lawyer said that he was betrayed by his deputies who acted of their own free will and hid their mistakes from him.

Ozy Media’s collapse began in 2021 when a New York Times investigation found that one of its executives impersonated a YouTube actor during a call with investment banking giant Goldman Sachs.

Watson blamed the deception on what he described as his deputy’s mental health issues. He added that no harm was done because Goldman Sachs did not ultimately decide to invest.

In court filings, prosecutors claimed Watson was present during the call and gave his deputy directions on what to say, despite him previously denying to the media that he was there.

Ozy Media aims to emulate the early success of digital news media pioneers like Vice Media and Buzzfeed.

She has produced left-leaning podcasts, series, TV events, and profiles of rising stars and emerging trends.

In 2020, it was worth $159 million (£132 million).