Carlos Watson, the founder of the now-defunct media company Ozy Media, has been sentenced to 116 months in prison for orchestrating a fraudulent scheme that deceived investors out of “tens of millions of dollars.” The sentencing comes as a culmination of findings from a lengthy investigation that revealed Watson’s manipulation of financial facts, connections with public figures, and misleading future prospects to secure investor funding.
U.S. District Judge Eric R. Komitee imposed the sentence following Watson’s conviction on multiple charges, including conspiracy to commit securities fraud, wire fraud, and aggravated identity theft. U.S. Attorney Breon Peace stated that Watson’s actions exhibited a “brazen disregard for the rule of law,” underscoring the severity of his deception.
Although Watson maintains his innocence and plans to appeal, he will remain free on a $3 million bond for the time being. He had pleaded not guilty but was convicted after an eight-week trial that laid bare the details of Ozy Media’s collapse.
The downfall of Ozy Media began in 2021 when investigative reports uncovered that Watson and a company executive had impersonated a representative from YouTube during discussions with Goldman Sachs. Watson contended that his deputy was solely responsible for this act and claimed no harm ensued, as the investment bank ultimately chose not to invest.
Prosecutors alleged that Watson was actively involved in directing the conversation, contradicting his previous statements denying his presence during the call. Once valued at $159 million in 2020, Ozy Media sought to mirror the successes of established digital news platforms, producing various media content, including podcasts and television series, before its abrupt closure in late 2021.
