On Monday, December 16, Carlos Watson, a 55-year-old former television host and media entrepreneur, received a sentence of 116 months in prison for leading a multi-million dollar fraud scheme via his digital media startup, Ozy Media. Watson, a Harvard graduate and former host of Emmy-winning programs, has witnessed a significant fall from grace with this sentencing.
Watson’s conviction came from U.S. District Judge Eric Komitee in Brooklyn, New York, following an eight-week trial that concluded in July 2024. The charges included conspiracy to commit securities fraud, wire fraud, and aggravated identity theft. Watson’s company, Ozy Media, was also declared guilty.
Judge Komitee addressed Watson, stating, “Your internal apparatus for separating truth from fiction became badly miscalibrated.” He further noted the exceptional level of dishonesty in the case.
The prosecution established that from 2018 to 2021, Watson spearheaded a scheme defrauding investors out of tens of millions of dollars with false claims about Ozy’s financial performance, business relationships, and acquisition prospects. This fraud led to investor losses exceeding $60 million.
In court, Watson expressed remorse, stating to his supporters, “I loved what we built with Ozy. I made mistakes. I’m very, very sorry that people are hurt, myself included,” but added, “I don’t think it’s fair.”
Ozy Media, based in Mountain View, California, was established in 2012. It presented itself as a millennial-targeted digital media platform, producing newsletters, podcasts, TV shows, and festivals. Watson’s noteworthy background includes degrees from Harvard University and Stanford Law School and prior tenures at CNN and MSNBC.
One of the most damaging pieces of evidence was the impersonation of a YouTube representative by another executive during a call with Goldman Sachs, guided by Watson. Janeen Poutre, the former finance vice president, testified that while the company was struggling to make payroll and pay rent, it presented inflated revenue figures to potential investors.
U.S. Attorney Breon Peace, based in Brooklyn, criticized Watson’s actions, stating, “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.”
Samir Rao, Watson’s co-founder, and Suzee Han, the former chief of staff, both pleaded guilty and testified against Watson during the trial. Despite the defense’s attempts to shift the blame onto Rao and Han, the prosecutors successfully demonstrated Watson’s primary role in the fraud.
The downfall of the company began in 2021, following a New York Times investigation that revealed the YouTube executive impersonation scheme and raised doubts about the actual size of Ozy’s audience.
Currently free on a $3 million bond, Watson is scheduled to surrender to prison by March 28, 2025. A hearing to determine restitution is set for February.
