Carlos Watson Sentenced to Nearly a Decade for Ozy Media Fraud

Watson's deceptive activities resulted in significant financial losses and tarnished the reputation of his once-promising media startup.

Carlos Watson, the founder of Ozy Media, has been sentenced to nearly 10 years in prison after being found guilty of orchestrating a long-standing fraudulent scheme that deceived investors, resulting in "tens of millions of dollars" in losses. U.S. prosecutors accused the former Goldman Sachs banker and MSNBC host of falsifying financial information and misleading stakeholders about Ozy's prominence in the media industry.

The court imposed a sentence of 116 months for charges of conspiracy related to securities fraud, wire fraud, and aggravated identity theft. U.S. Attorney Breon Peace commented on the case, stating, "Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company," emphasizing the severity of Watson's dishonesty and clear disregard for legal and ethical conduct.

Watson, who has maintained his innocence throughout the proceedings, plans to appeal the court's decision. Presently, he remains free on a $3 million bond while contesting the verdict. The legal issues for Ozy Media began in 2021 when a New York Times investigation revealed that one of its executives, under dubious circumstances, impersonated a YouTube representative during discussions with Goldman Sachs. Watson attempted to deflect responsibility by claiming that these actions stemmed from his deputy's mental health struggles, claiming there was no resultant harm since Goldman Sachs ultimately chose not to invest.

Despite his contentions, court filings suggest Watson was complicit in the orchestrated deception, having given instructions to his subordinate during the questionable call, counter to his public denials. Ozy Media was founded with aspirations to mimic the success of digital media frontrunners like Vice and Buzzfeed, producing various left-leaning content including podcasts, television series, and profiles of upcoming personalities. In 2020, the company reached a valuation of approximately $159 million.