Ozy Media Co-Founder Carlos Watson Found Guilty of Fraud, Faces Up to 37 Years in Prison
About the Case
Carlos Watson, the Caribbean heritage co-founder of Ozy Media, has been found guilty of defrauding investors and lenders by a federal jury. The jury reached their verdict after three days of deliberation, following an eight-week trial that uncovered numerous deceptive practices within the company.
Carlos Watson, the Jamaican American co-founder and chief executive officer of Ozy Media Inc., center, arriveing at federal court in the Brooklyn borough of New York, US, on Friday, June 7, 2024. Watson was found guilty on charges that he conspired to defraud investors in Ozy Media, the digital media start-up he co-founded on July 16, 2024. Photographer: Yuki Iwamura/Bloomberg via Getty Images
The Prosecution’s Case
Prosecutors accused Watson of conspiracy to commit securities and wire fraud. They presented detailed evidence of deceptive actions, which included impersonated phone calls, fabricated contracts, and inflated claims about Ozy’s financial health. “Watson knew the company was failing, but he was determined to turn Ozy and himself into the next big thing, and he wasn’t going to let the truth stand in his way,” stated Gillian Kassner, the prosecutor, during closing arguments in U.S. District Court in the Eastern District of New York.
The Defense’s Case
Watson’s defense team argued that any fraudulent activities were the responsibility of other Ozy employees. Watson himself testified during the trial. He stated that his representations to investors were based on genuine assessments of Ozy’s finances. He also claimed that any discrepancies were typical of a young start-up’s growing pains. Despite these defenses, the jury was not persuaded.
About Carlos Watson
Watson, born and raised in Miami, Florida, is one of four siblings born to Jamaican parents. His early life saw him navigate numerous challenges, including an early expulsion from kindergarten. Watson graduated from Harvard University. Afterward, he played significant roles in political campaigns. These roles included managing Bill Clinton’s 1992 Election Day effort in Miami-Dade County, Florida. Later, he attended Stanford Law School, where he served as an editor of the Stanford Law Review and as president of the Stanford Law School Student Government.
Ozy Media’s History
After a stint at McKinsey & Company, Watson co-founded Achieva College Prep Service, which he sold to Kaplan, Inc. in 2002. He later became the Global Head of Education Investment Banking for Goldman Sachs and co-founded College Track with Laurene Powell Jobs in 1997.
Watson’s media career began in earnest in 2002 with guest appearances on Fox News and Court TV. He joined CNBC in early 2003 and moved to CNN later that year, where he became a well-known political commentator. His work on CNN was particularly notable during the 2004 presidential election. His hosting of “Meet the Faith” on BET further established him as a prominent media figure.
In 2013, Watson co-founded Ozy Media with Samir Rao, raising over $70 million from notable investors. Ozy expanded into TV shows and podcasts. They formed partnerships with major media entities like A&E Networks, iHeart Media, and Live Nation. However, the company faced scrutiny in 2021 when a New York Times article exposed potentially fraudulent practices. Watson dismissed the article as a “ridiculous hitjob,” but the damage to Ozy’s reputation was significant.
Conclusion
Watson’s trial, presided over by Judge Eric R. Komitee featured testimonies from high-profile figures. These included Google CEO Sundar Pichai, who refuted claims of a $600 million acquisition offer for Ozy. Jury deliberations began on July 12. They culminated in the guilty verdict that now sees Watson facing a potential 37-year prison sentence.
FAQs
Q: What did Carlos Watson do?
A: Watson was found guilty of defrauding investors and lenders by a federal jury.
Q: What was the evidence against Watson?
A: The prosecution presented evidence of impersonated phone calls, fabricated contracts, and inflated claims about Ozy’s financial health.
Q: What did Watson’s defense team argue?
A: Watson’s defense team argued that any fraudulent activities were the responsibility of other Ozy employees.
Q: What is the potential sentence for Watson?
A: Watson faces a potential 37-year prison sentence.
Q: What is Ozy Media?
A: Ozy Media is a digital media start-up co-founded by Carlos Watson and Samir Rao.