Ozy Media Founder’s 10-Year Prison Sentence Commuted By Trump

Former President Donald Trump has commuted the prison sentence of Carlos Watson, the founder and former CEO of Ozy Media. Watson was just hours away from reporting to a federal prison in California when he received word of the clemency, CNBC reports.

Watson, 55, was sentenced to 116 months in prison following his conviction on multiple counts of fraud and identity theft related to his leadership of the now-defunct digital media company. Trump also commuted the sentence of one year of probation imposed on Ozy Media, which had been convicted in the same fraud case.

10 Years for fraud

Last July, Watson was convicted on multiple counts, including conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. In December 2024, Judge Eric Komitee sentenced him to 116 months in prison. In February 2025, he and Ozy Media were ordered to pay nearly $60 million in forfeiture and more than $36 million in restitution.

Prosecutors said Watson and others at Ozy misled investors between 2018 and 2021, falsely claiming partnerships with major companies and exaggerating the company’s financial health and growth prospects. One key incident involved the company’s chief operating officer impersonating a YouTube executive during a conference call with Goldman Sachs, which was considering a $40 million investment in the company.

At the time of sentencing, Brooklyn US Attorney Breon Peace said, “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.”

Ozy’s Rise and Fall

Watson, a former cable news anchor and investment banker, co-founded Ozy Media in 2013. The media and entertainment startup initially attracted high-profile attention and investments, including from billionaire Marc Lasry. The company claimed support from tech giants like Google and media icons like Oprah Winfrey, claims that later turned out to be false.

Ozy abruptly shut down in October 2021 following an investigation by The New York Times. The investigation revealed the falsified call with Goldman Sachs and other discrepancies in the company’s operations. Additional reporting revealed that Google CEO Sundar Pichai had been falsely linked to a multi-million dollar acquisition offer, which Pichai denied under oath.

Throughout his trial, Watson pleaded not guilty and maintained that subordinates had misled him. His legal team argued that he was committed to Ozy’s mission and was not personally responsible for the fraudulent conduct.

Watson’s commutation was one of several clemency actions Trump issued this week. He also pardoned Trevor Milton, the founder and former CEO of electric truck startup Nikola, who had been sentenced to four years for fraud.

Image credit: REUTERS/David Dee Delgado