Ozy Media Co-Founder Carlos Watson Found Guilty of Fraud By Federal Jury
Written by djfrosty on July 17, 2024
Source: Variety / Getty / Carlos Watson
Carlos Watson and his now-defunct startup, Ozy Media, have been found guilty of fraud.
Spotted on The Verge, Carlos Watson and Ozy Media were found guilty of fraud by a federal jury on Tuesday, per the New York Times reporting.
During the trial, the jury heard arguments from the government that Watson and Ozy Media misled investors by falsifying financial records, inflating audience numbers, and even completely making up business deals.
Things started well for Watson and business partner Samir Rao when they founded Ozy Media in 2013. The company launched with a newsletter, magazine, and an annual conference in New York City.
The company also received millions in investments while establishing high-profile partnerships before it all went to sh*t.
Per The Verge:
But things came to a halt when a 2021 article from New York Times media columnist Ben Smith reported that Rao impersonated a YouTube executive during a call with a Goldman Sachs banker about a potential $40 million investment. Rao pleaded guilty to related charges last year and is awaiting sentencing.
Additionally, prosecutors alleged that Watson lied to a prospective investor by saying that Google offered $600 million to take over the media startup. According to testimony from Google CEO Sundar Pichai, the company only considered investing $25 million as part of a potential plan to hire Watson. During the trial, Watson’s lawyers blamed Rao and Ozy Media’s employees for the fraudulent activity, NYT reports.
Speaking on the verdict, Breon Peace, the US Attorney for the Eastern District of New York, broke down the fraud shenanigans Watson was up to.
“The jury found that Watson was a con man who told lie upon lie upon lie to deceive investors into buying stock in his company,” Peace said in a statement. “Watson invented phony financial figures and caused others to forge fake contracts and impersonate a media executive.”
Bruh.
Watson is looking at a lengthy 37 years in prison after being charged with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft.
Damn.