Carlos Watson, founder of the defunct digital media company Ozy Media, was sentenced to 10 years in prison for lying to investors about the startup’s finances.
Watson’s 116-month-long sentence for conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft came Monday in Brooklyn federal court, according to a press release from the U.S. Attorney’s Office for the Eastern District of New York. Watson’s sentence was highlighted by Mediaite.
From 2018 to 2021, per court filings and what was confirmed during the trial, Watson, along with co-conspirators, put together “a scheme to defraud investors out of tens of millions of dollars” via “fraudulent misrepresentations and omissions” of the digital media company’s financial performance, according to the press release.Â
“Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company, Ozy Media, out of tens of millions of dollars,” U.S. Attorney Breon Peace said in the release. “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.”Â
In early 2023, Watson was arrested on wire fraud charges in the wake of a former executive at his company pleading guilty to wire fraud charges. He later denied wrongdoing, saying that he was “and never have been a ‘con man.'”
“I have worked around the clock for 10 years to build this company and devoted my life savings to help get us through rough patches,” Watson said on the social platform X. “This has been a life’s work and I am proud of what I, my family, and my team have been able to accomplish.”
“I’m not saying I haven’t made mistakes – I have. But it’s fair to ask, why I’ve been singled out? OZY is a real and valuable company that was built through an enormous amount of hard work and sacrifice,” he continued.
The Hill has reached out to an attorney for Watson for comment.
