Ozy Media boss jailed for nearly 10 years for fraud

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

Prosecutors said the former Goldman Sachs banker and former MSNBC host orchestrated a years-long scheme that cost investors “tens of millions of dollars.”

The lawsuit said Watson and other Ozy Media employees falsified information about the firm’s finances, celebrity relationships and acquisition prospects to lure investors.

Watson continues to deny the allegations and says he plans to appeal the sentence.

United States District Judge Eric R. The committee sentenced Watson to 116 months in prison for conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft.

“Carlos Watson orchestrated a multi-year, brazen scheme to defraud his company’s investors and creditors,” said Breon Peace, U.S. Attorney for the Eastern District of New York.

“His continuous and deliberate lying demonstrated not only a brazen disregard for the rule of law, but also contempt for the values ​​of honesty and justice.”

For now, Watson will remain free on $3m (£2.3m) bail.

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 worked hard to make it successful.

His lawyer argued that he was betrayed by deputies who acted on their own accord and hid their wrongdoings from him.

Ozy Media’s downfall began in 2021, when a New York Times investigation revealed that one of its executives impersonated a YouTube representative during a conversation with investment banking giant Goldman Sachs.

Watson blamed what he called his deputy’s mental health issues for the deception. He added that no harm was done because Goldman Sachs ultimately chose not to invest.

In court filings, prosecutors argued that Watson was present during the conversation and instructed his deputy on what to say, despite previously denying to the media that he was there.

Ozy Media aimed to emulate the early success of digital media pioneers such as Vice Media and Buzzfeed.

He has produced left-leaning podcasts, television series and events, as well as profiles of rising stars and emerging trends.

In 2020, he was valued at $159 million (£132 million).