Carlos Watson, 55, the founder and former CEO of Ozy Media, has been sentenced to 116 months in prison for spearheading a multi-million dollar fraud scheme. Watson, a Harvard graduate and former Emmy-winning television host, received his sentence on Monday, December 16, marking a significant downturn in his career.
Watson was convicted of charges including conspiracy to commit securities fraud, wire fraud, and aggravated identity theft in July 2024 following an eight-week trial. The sentencing was handed down by U.S. District Judge Eric Komitee in Brooklyn, New York. Watson’s company, Ozy Media, was also found guilty.
During the sentencing, Judge Komitee stated to Watson, “Your internal apparatus for separating truth from fiction became badly miscalibrated,” emphasizing the extraordinary level of dishonesty that marked this case.
The prosecution presented evidence that Watson, from 2018 to 2021, misled investors by making false statements about Ozy’s financial performance, business relationships, and prospects for acquisition. This deception led to investor losses surpassing $60 million.
In court on Monday, Watson expressed regret, saying “I loved what we built with Ozy,” and admitting to making mistakes. He expressed sorrow for the people who were hurt, himself included, but insisted that it was not fair.
Ozy Media, based in Mountain View, California, was established in 2012 as a digital media platform aimed at millennials, producing newsletters, podcasts, TV shows, and festivals. Watson, with degrees from Harvard University and Stanford Law School, and prior work experience at CNN and MSNBC, had an impressive resume.
Testimony revealed that a company executive, coached by Watson, had impersonated a YouTube representative during a call with Goldman Sachs. Janeen Poutre, former finance vice president, testified that the company was struggling to meet payroll and was behind on rent, all while presenting artificially high revenue figures to potential investors.
U.S. Attorney Breon Peace, based in Brooklyn, stated, “His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness that should underlie American entrepreneurship.”
Watson’s co-founder, Samir Rao, and former chief of staff, Suzee Han, both pled guilty and testified against Watson during the trial. Despite attempts by Watson’s defense to blame Rao and Han for the misrepresentations, the prosecution successfully showed Watson’s leading role in the fraud.
Ozy Media fell apart in 2021 after a New York Times investigation exposed the impersonation scheme involving the YouTube executive and raised doubts about the size of Ozy’s actual audience.
Currently, Watson is free on a $3 million bond and is ordered to report to prison by March 28, 2025. A hearing to determine restitution is set for February.