Ozzy Media owner gets nearly 10 years in jail for fraud

OG Media founder Carlos Watson has been sentenced to nearly a decade in prison for lying about his once-trendy start-up to attract investors.

Prosecutors said the former Goldman Sachs banker and former MSNBC host orchestrated a years-long scheme that resulted in investors losing “millions of dollars.”

The court was told that Watson and others at Ozy Media misrepresented information about the company’s finances, relationships with celebrities and takeover prospects in order to lure investors.

Watson continues to deny the allegations and says he plans to appeal the verdict.

United States District Judge Eric R. Comiti sentenced Watson to 116 months in prison for securities fraud conspiracy, wire fraud conspiracy, and aggravated identity theft.

“Carlos Watson orchestrated a years-long, audacious scheme to defraud his company’s investors and lenders,” said Breonna Peace, U.S. Attorney for the Eastern District of New York.

“His persistent and deliberate lying demonstrated not only a blatant disregard for the rule of law, but also a contempt for the values ​​of honesty and fairness.”

Watson remains free on a $3 million (£2.3 million) bond.

He pleaded innocent but was convicted in July after an eight-week trial.

In court, Watson said he was a businessman who believed in what his company was doing and had done everything possible to make it successful.

His lawyer had argued that he had been betrayed by his representatives who had acted on their own will and concealed their wrongdoing from him.

Ozy Media’s collapse It began in 2021 when a New York Times investigation found that one of its executives impersonated a YouTube representative during a call with investment banking giant Goldman Sachs.

Watson blamed his deputy’s mental health issues for the deception. He said there were no losses because Goldman Sachs ultimately decided not to invest.

In court filings, prosecutors alleged that Watson was present during the call and instructed his deputy on what to say, although he had previously denied to the media that he was there.

OG Media aims to emulate the early success of digital news media pioneers like Vice Media and BuzzFeed.

It produced left-leaning podcasts, television series and programs, and profiles of rising stars and emerging trends. It was valued at $159m in 2020.

Company surrounded by scam It was announced in October 2021 that it would be closing,