Jamaican-American Entrepreneur Carlos Watson Sentenced to 10 Years in Prison for Fraud

Background

Carlos Watson, the co-founder of Ozy Media, has been sentenced to nearly 10 years in prison for defrauding investors and lenders through falsified financial information. The sentencing marks a dramatic fall for Watson, who founded the digital media company in 2013, aiming to carve a space in the competitive media landscape.

Jamaican American Carlos Watson, co-founder of Ozy Media, speaks with press after his sentencing hearing at Brooklyn Federal Court on December 16, 2024 in New York City. Watson was sentenced to almost 10 years in prison for trying to defraud investors and lenders by lying about the company’s finances after being convicted in July. (Photo by Michael M. Santiago/Getty Images)

Sentence and Reaction

The sentence, handed down in the U.S. District Court for the Eastern District of New York, follows a federal jury’s July conviction of Watson on charges of conspiracy to commit securities and wire fraud, along with identity theft. Witnesses detailed how Watson orchestrated fraudulent activities between 2018 and 2021, including impersonating executives, falsifying contracts, and inflating Ozy Media’s revenue figures.

While prosecutors had sought a 17-year sentence and $65.6 million in forfeiture, the court sentenced Watson to 116 months, with the exact financial penalties yet to be determined. Judge Eric Komitee described the case as a tragedy “of Mr. Watson’s own making,” pointing to “exceptional dishonesty” in the schemes.

Defense and Conviction

Watson, 55, denied the allegations throughout his trial, maintaining his innocence and attributing the fraud to other former employees of Ozy Media. His defense team argued that any misrepresentations to investors were based on good-faith assessments and reflective of a “scrappy start-up” mindset. Watson also claimed selective prosecution due to his race, a defense the judge rejected.

About Ozy Media

Ozy Media, once seen as a rising star in digital media, folded under the weight of financial misrepresentation and mounting scrutiny. Watson’s former associates, including co-founder Samir Rao and ex-chief of staff Suzee Han, pleaded guilty to fraud charges and testified against him during the trial.

Conclusion

Carlos Watson’s schemes and dishonesty brought about Ozy Media’s collapse. Today’s sentence holds him accountable for his crimes.

FAQs

Q: What was Carlos Watson sentenced to?
A: Watson was sentenced to nearly 10 years in prison.

Q: What was the reason for the sentence?
A: The sentence was due to Watson’s conviction on charges of conspiracy to commit securities and wire fraud, along with identity theft.

Q: What was the reaction of the prosecution?
A: U.S. Attorney Breon Peace said, “Carlos Watson’s schemes and dishonesty brought about Ozy Media’s collapse. Today’s sentence holds him accountable for his crimes.”

Q: What was the defense team’s argument?
A: The defense team argued that any misrepresentations to investors were based on good-faith assessments and reflective of a “scrappy start-up” mindset.