Carlos Watson of Ozy Media Sentenced to Nearly 10 Years for Fraud

Carlos Watson, the former CEO of Ozy Media, has been sentenced to 116 months in prison after being found guilty of fraud charges that led to substantial financial losses for investors. The sentencing, delivered by United States District Judge Eric R. Komitee, followed a lengthy legal battle where Watson was accused of masterminding a fraudulent operation that deceived investors by falsifying the firm’s financial status, its relationships with high-profile celebrities, and its prospects for acquisitions. Despite maintaining his innocence and planning to appeal the verdict, Watson now faces nearly a decade behind bars for conspiracy to commit securities fraud, wire fraud, and aggravated identity theft.

Prosecutors highlighted the extent of the fraud, stating it resulted in "tens of millions of dollars" in losses for investors. Breon Peace, the U.S. Attorney for the Eastern District of New York, characterized Watson's actions as a "brazen disregard for the rule of law," emphasizing the calculated nature of the scheme that spanned several years. Watson, who had previously denied wrongdoing, maintains that he believed in his company's vision and claimed that he was misled by his subordinates. The unraveling of Ozy Media's credibility began in 2021 following a New York Times investigation, which revealed deceptive practices involving a high-stakes call with Goldman Sachs. While Watson's legal team argued his innocence, claiming he was unaware of the misconduct, the court ultimately found him guilty after an intense eight-week trial, leading to his significant prison sentence.