ECNETNews, New York, NY, December 17, 2024: Carlos Watson, a Jamaican-American entrepreneur and co-founder of Ozy Media, has been sentenced to nearly 10 years in prison following his conviction for defrauding investors and lenders through falsified financial information. This sentencing represents a significant downturn for Watson, who established his digital media company in 2013 with ambitions to disrupt the competitive media industry.
In a ruling by the U.S. District Court for the Eastern District of New York, Watson was convicted in July on multiple charges, including conspiracy to commit securities and wire fraud, as well as identity theft. Testimony revealed that Watson executed fraudulent activities from 2018 to 2021, which included impersonating executives, fabricating contracts, and inflating revenue figures for Ozy Media.
Although prosecutors recommended a 17-year sentence and $65.6 million in forfeiture, the court ultimately sentenced Watson to 116 months in prison, with additional financial penalties pending. Judge Eric Komitee described the case as a tragic outcome “of Mr. Watson’s own making,” highlighting “exceptional dishonesty” throughout the fraudulent schemes.
Watson, 55, maintained his innocence throughout the trial, claiming that the actions were the result of misconduct by former employees. His defense characterized any misrepresentations as honest mistakes reflective of a “scrappy start-up” environment. He also alleged that he faced selective prosecution based on race, a claim that was dismissed by the judge.
During the sentencing, Watson reflected, “I made mistakes,” while expressing remorse for the situation. Despite his contributions to the media landscape, Ozy Media ultimately collapsed due to financial inaccuracies and growing scrutiny. Former executives, including co-founder Samir Rao and ex-chief of staff Suzee Han, pleaded guilty to fraud charges and provided testimony against Watson during the trial.
Watson’s legal team sought to contest his conviction, citing judicial bias and racial discrimination; however, Judge Komitee found these assertions to be without merit. Prosecutors pointed to a 2021 incident where Rao impersonated a YouTube executive to secure investments, claiming Watson organized the effort. The judge denounced Watson’s testimony as “egregious perjury.”
The case revealed exaggerated financial commitments from notable figures and corporations as Ozy Media sought funding. Following the conviction, U.S. Attorney Breon Peace stated, “Carlos Watson’s schemes and dishonesty brought about Ozy Media’s collapse. Today’s sentence holds him accountable for his crimes.”
A defense fund has been established and has raised over $62,000 for Watson. His sisters, Carolyn and Beverly Watson, have voiced support, suggesting that the charges reflect systemic racism affecting black entrepreneurs.
ABOUT CARLOS WATSON
Carlos Watson, born to Jamaican parents, is a Miami native with a distinguished academic background. A Harvard graduate, he later earned his law degree from Stanford, where he also held editorial and leadership positions. Watson’s early career included roles at McKinsey & Company and Goldman Sachs, and he previously founded and sold Achieva College Prep Service to Kaplan, Inc.
Co-founding Ozy Media in 2013, Watson oversaw its growth to raise over $70 million and produce various media offerings, including TV shows and podcasts. However, the company faced severe allegations of fraud that ultimately led to its closure in 2021. In 2023, Watson was charged with federal fraud offenses, resulting in his conviction a year later.
