Founder of Ozy Media, Carlos Watson, Found Guilty in Fraud Case
Ozy Media Founder Convicted of Multi-Million Dollar Fraud Scheme
Carlos Watson, the founder and former CEO of Ozy Media, has been convicted of leading a multi-million dollar fraud scheme. The charges he faced included conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. Watson was sentenced to 116 months (over 9 years) in prison for his role in the widespread fraud against investors.
The U.S. Department of Justice indicted Watson and Ozy Media, accusing them of a scheme to defraud investors by misrepresenting the company's financial health and business metrics. The Securities and Exchange Commission (SEC) also charged them with defrauding investors. The case drew significant media attention due to the scale and nature of the deception, ultimately leading to Ozy Media shutting down.
The investigation and subsequent conviction mark a significant turn of events for Ozy Media, which has been in and out of headlines due to fraud allegations. The probe began following a 2021 New York Times article alleging an Ozy co-founder pretended to be a YouTube executive on a call with Goldman Sachs to secure funds.
Court documents state that Watson lied about Ozy's financial standings, potential earnings, and acquisitions to defraud investors, potential investors, potential acquirers, lenders, and potential lenders. Watson's conviction stemmed from his role in this criminal conspiracy involving securities fraud, wire fraud, and identity theft related to deceitful practices in raising investor funds for Ozy Media.
Samir Rao, a co-founder of Ozy Media, pleaded guilty to fraud charges earlier this week. The conviction comes after a probe that began following the New York Times article.
Lanny Breuer, Carlos Watson's attorney, expressed disappointment and confusion about the arrest, stating they were engaged in a good faith dialogue with the Government. Watson faces a maximum sentence of 37 years in prison.
Ozy Media launched in September 2013 under the ownership and guise of Watson and Rao. Carlos Watson, a former investment banker and broadcast news anchor, was officially charged with conspiring to commit securities fraud and wire fraud. The U.S. Attorney for the Eastern District of New York, Breon Peace, described Watson as a "con man who told lie upon lie upon lie to deceive investors."
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- A significant blow was dealt to investigation into Carlos Watson, the former CEO of Ozy Media, as he was convicted of a multi-million dollar fraud scheme in which he misrepresented the company's financial health and business metrics to investors.
- Politics and general news outlets have been following the case of the Ozy Media founder, Carlos Watson, who was indicted for fraud charges related to his deception of investors by concealing the true financial standings of the business and deceitful practices in raising funds, which ultimately led to his conviction of securities fraud, wire fraud, and identity theft.
- The conviction of Ozy Media co-founder Carlos Watson and the shutdown of the company highlight a need for increased scrutiny and regulation of entrepreneurship and investment practices to protect the public and prevent crime and injustice.
