Ozy Media Founder Sentenced to Nearly a Decade for Fraudulent Practices

In a groundbreaking ruling, the former CEO of Ozy Media faces significant consequences for orchestrating a fraudulent scheme that cost investors millions.

Carlos Watson, the founder of Ozy Media, has been sentenced to 116 months in prison following his conviction on multiple charges including securities fraud, wire fraud, and aggravated identity theft. Prosecutors revealed that Watson, alongside his executives, engaged in deceptive practices over several years, misleading investors about the company's financial health and potential. The court was informed that this elaborate scheme led to losses totaling "tens of millions of dollars" for investors searching for promising opportunities in the media landscape.

United States District Judge Eric R. Komitee emphasized the severity of Watson's actions, describing them as a "years-long, audacious scheme to defraud investors." Breon Peace, the U.S. Attorney for the Eastern District of New York, stated that Watson's calculated dishonesty exhibited a blatant disregard for legal integrity and ethical business practices. Despite the damning evidence presented during an eight-week trial, Watson maintains his innocence and intends to appeal the verdict.

Watson’s initial optimism surrounding Ozy Media, a startup aiming to replicate the successes of digital media giants like Vice and BuzzFeed, has been tarnished since investigations unveiled fraudulent behaviors. Notably, an incident in 2021 involving an executive impersonating a YouTube representative during critical communications with Goldman Sachs ignited scrutiny and led to further examinations of the company's ethical standards. While Watson claimed he had no involvement in the wrongdoing, evidence suggests he was actively directing operations during the incident.

As the court proceedings concluded, Watson remains free on a $3 million bond. The charges and subsequent conviction mark a significant decline for Ozy Media, which enjoyed a peak valuation of $159 million in 2020, producing popular podcasts and television series targeting left-leaning audiences. Watson now confronts the potential implications of his actions on both his career and the broader media industry.