News Americas, New York, NY, December 17, 2024: Jamaican-American entrepreneur and co-founder of Ozy Media, Carlos Watson, has been sentenced to nearly 10 years in prison after being convicted of 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)
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.
Watson 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.
“I made mistakes,” Watson admitted during the hearing. “But I’m also saying I don’t feel good about what has happened here.”
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.
Watson’s lawyers attempted to overturn his conviction, alleging judicial bias and racial discrimination in prosecution, but their efforts were dismissed by Judge Komitee, who deemed the claims “frivolous.”
Prosecutors highlighted a 2021 fundraising call where Rao impersonated a YouTube executive to secure investment from Goldman Sachs, an incident they claimed Watson orchestrated. Watson denied involvement, but Judge Komitee cited his testimony as “egregious perjury.”
The case also revealed inflated claims of financial commitments from high-profile figures and companies, including Oprah Winfrey and Live Nation Entertainment, as part of Ozy Media’s bid to secure funding. Samir Rao, the other co-founder of Ozy, and Suzee Han, a former Ozy chief of staff, pleaded guilty last year to fraud charges and both cooperated in the case and testified against Watson.
“Carlos Watson’s schemes and dishonesty brought about Ozy Media’s collapse,” said U.S. Attorney Breon Peace, following the conviction. “Today’s sentence holds him accountable for his crimes.”
ABOUT WATSON
Watson, a Miami native born to Jamaican parents, rose to prominence through an impressive academic and professional journey. A Harvard graduate, Watson later earned a law degree from Stanford, where he served as an editor of the Stanford Law Review and president of the student government. His early career included roles at McKinsey & Company and Goldman Sachs, as well as founding and selling Achieva College Prep Service to Kaplan, Inc.
Watson co-founded Ozy Media in 2013, leading it to raise over $70 million and producing TV shows, podcasts, and events like Ozy Fest. However, allegations of fraudulent practices – including inflated metrics and misrepresentations to investors—led to Ozy’s collapse in 2021.
In 2023, Watson faced federal charges of fraud and was convicted in 2024, accused of deceiving investors and fabricating financial data.
