Carlos Watson, the founder of Ozy Media, was sentenced on Monday to 116 months in prison for defrauding investors and misrepresenting the company’s finances.
The decision comes after Watson’s conviction in July for orchestrating a fraudulent scheme that included falsifying contracts and fabricating deals to gain investor trust, according to Reuters.
Fraudulent Deals And Fabricated Contracts
The sentencing, delivered by US District Judge Eric Komitee in Brooklyn federal court, marks the culmination of a high-profile case.
Prosecutors accused Watson and his now-defunct media startup of inflating revenue projections and audience numbers, using tactics such as fake contracts and impersonating key figures.
One notorious example involved a call with Goldman Sachs, where Ozy executives posed as a YouTube representative to secure funding.
Federal prosecutors described the scheme as a “years-long brazen and audacious” effort to deceive investors, which included notable figures such as former New York Yankees star Alex Rodriguez and an investment firm tied to Laurene Powell Jobs.
Prosecutors had sought a 17-year prison term, citing Watson’s refusal to take accountability.
Defense Argues For Leniency
Watson, 55, a former cable news anchor and investment banker, pleaded not guilty throughout the trial.
His defense argued that Watson was committed to Ozy’s mission and blamed the fraudulent actions on his deputies.
Founded in 2013, Ozy Media initially gained recognition for its ambitious multimedia content and prominent backers, including billionaire Marc Lasry.
However, the company’s credibility unraveled in 2021 after reports exposed the fake Goldman Sachs call and revealed discrepancies in its financial claims.
Google CEO Sundar Pichai was also falsely linked to a multi-million dollar acquisition offer, which Pichai denied under oath.
Ultimately, Judge Komitee balanced the sentence between the prosecutors’ demands and the defense’s plea for leniency.
Feature Image Credit: REUTERS/Brendan McDermid/File Photo
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