Ozy Media founder Carlos Watson convicted of investor fraud

Carlos Watson, the founder of Ozy Media, was sentenced to nearly 10 years in prison after a jury found him guilty in July of deceiving investors about the finances of the now-defunct startup and misleading them with fake deals with Google and Oprah Winfrey. The 116-month sentence was announced by Judge Eric Committee at the federal court in New York. According to the prosecutors, Watson, along with his California-based news and entertainment company, forged information about Ozy's financial situation and viewership numbers. Fake contracts and exaggerated profit forecasts were also allegedly created to attract investors. Breon Peace, the U.S. Attorney in Brooklyn, emphasized in a statement that Watson prioritized deception over honesty to maintain the facade of business success and personal fame at any cost. Watson, a former news anchor and investment banker, had pleaded not guilty. His lawyer claimed he was betrayed by his deputies, who acted independently and kept him in the dark about their misconduct. The prosecution had sought a 17-year prison sentence for Watson, arguing that he planned a bold and three-year scheme to deceive investors and lenders and had taken no responsibility. Watson's defense attorneys urged sparing him from additional imprisonment beyond the already mandatory two years for identity theft, as he was innocent and the case should never have been brought to court. Andrew Frisch, Watson's attorney, emphasized during the hearing that Watson's sincere dedication to Ozy's mission distinguished him from the usual fraud defendants motivated by greed. "What sets Mr. Watson apart is his motivation and his vision," Frisch stated. Founded in 2013, Ozy Media collapsed in 2021 after reports raised doubts about its viewership numbers and revealed that an executive falsely posed as a YouTube manager during a conversation with Goldman Sachs bankers, claiming that the streaming platform had agreed to acquire exclusive rights to an Ozy show.