Carlos Watson Gets 10 Years Prison Time for Deceiving Investors

KEY HIGHLIGHTS:

• Carlos Watson, former TV host and owner of Ozy Media, was sentenced to nearly 10 years in prison for deceiving investors about earnings and projections
• Watson’s defense team argued that he should face no more than the mandatory two-year term for identity theft, saying his case was baseless

Businessman and former television host Carlos Watson was sentenced to nearly 10 years in prison for deceiving investors and inflating earnings reports of its now-defunct startup company Ozy Media.

On Monday, US District Judge Eric Komitee slapped Watson with a 9.7-year sentence during a hearing in Brooklyn federal court. The sentence came five months after a federal jury convicted Watson and Ozy Media of conspiracy to commit securities and wire fraud.

The jury also found Watson guilty of identity theft after a two-month trial in which witnesses presented evidence of an impersonated phone call, falsified contracts, and deceptive claims in relation to Ozy’s earnings from 2018 to 2021.

Watson’s co-founder Samir Rao and chief of staff Suzee Han, also pleaded guilty to fraud charges and testified against Watson last year.

According to US Attorney for Brooklyn Breon Peace, Watson chose “deceit over candor” in an effort to create the illusion of success and gain personal recognition at any cost.

‘Baseless Case’

Watson, a former cable news anchor and investment banker, denied the charges, maintaining his innocence throughout the trial.

His defense lawyer argued that Watson was misled by subordinates who acted independently and concealed their wrongdoing from him.

While prosecutors sought a 17-year sentence, describing Watson as the architect of a “brazen and audacious scheme” to defraud investors and lenders, Watson’s defense team argued that he should face no more than the mandatory two-year term for identity theft. They also insisted that the case was baseless.

During the hearing, Watson’s attorney, Andrew Frisch, emphasized his client’s genuine dedication to Ozy’s mission, arguing that Watson’s motivations were distinct from those of typical fraud defendants driven by greed.

“What distinguishes Mr. Watson is his motivation and his vision,” Frisch was quoted as saying.

Founded in 2013, Ozy Media collapsed in 2021 following a series of investigative reports that raised doubts about its audience numbers.

The company’s downfall was further accelerated when it was revealed that a senior executive had impersonated a YouTube executive during a call with Goldman Sachs, falsely claiming that the streaming giant had agreed to pay for exclusive rights to an Ozy show.