Carlos Watson, Ozy Media Founder, Convicted in Fraud Trial

Carlos Watson, nan laminitis and main executive of Ozy Media, was convicted of securities fraud and ligament fraud conspiracy connected Tuesday by a New York national jury.

Watson is simply a erstwhile finance banker and broadcast news anchor. He was besides recovered blameworthy of aggravated personality theft.

Per nan WSJ, successful a connection aft nan verdict, Brooklyn U.S. Attorney Breon Peace said: "The assemblage recovered that Watson was a con man who told dishonesty upon dishonesty upon dishonesty to deceive investors into buying banal successful his company."

The probe began aft a bombshell 2021 New York Times article that alleged an Ozy cofounder pretended to beryllium a YouTube executive connected a telephone pinch Goldman Sachs to unafraid funds.

Original communicative from February 23, 2023, below:

Scandal-ridden Ozy Media has been successful and retired of headlines complete nan past twelvemonth aft allegations nan institution was progressive successful a bid of fraudulent schemes led to a probing investigation by nan U.S. Department of Justice and nan Securities and Exchange Commission.

The investigation took a move erstwhile Ozy co-founder Samir Rao pleaded blameworthy to fraud charges earlier this week, starring to nan apprehension of co-founder and main executive Carlos Watson connected Thursday day astatine a edifice successful New York City.

Court documents authorities that Watson "engaged successful a strategy to defraud Ozy's investors, imaginable investors, imaginable acquirers, lenders, and imaginable lenders" by lying astir Ozy's financial standings, imaginable net and acquisitions.

Related: 'Ignore Your Schedule': The Bad Advice that Ozy Media's Carlos Watson Gave to Entrepreneur

According to nan Wall Street Journal, Watson was attempting to fastener down "tens of millions of dollars" from investors to salary disconnected nan company's debt. He was officially charged pinch colluding to perpetrate securities fraud and ligament fraud and faces a maximum condemnation of 37 years successful prison.

The probe into Rao and Watson began aft a bombshell New York Times article was released successful 2021, which alleged that Rao pretended to beryllium a YouTube executive while connected a telephone pinch Goldman Sachs successful an effort to unafraid funds. Watson later blamed Rao's behaviour connected a "very individual intelligence wellness issue" successful a missive to labor and called nan Times article a "hitjob."

Heartbroken by nan ridiculous hitjob from nan NYTimes. But we are beardown and undeterred. Building thing new, caller and worthy is not for nan weak. Here is what I sent our team. pic.twitter.com/qcH4m9zqM2

"I americium profoundly disappointed by nan events of today," Watson's attorney, Lanny Breuer, wrote successful a connection to CNN. "We were engaged successful a bully religion and constructive speech pinch nan Government. Given nan Department's claims of promoting specified dialogue, I do not understand nan melodramatic determination to apprehension Carlos today."

Just earlier this month, Watson pitched investors connected nan rebirth of nan media institution astatine nan MAGNA Equity Upfronts successful Manhattan.

The pending investigation and past allegations were not mentioned during nan 30-minute presentation.

Ozy launched successful September 2013 nether nan ownership and guise of Watson and Rao. Ozy produced a bid of in-house TV shows, newsletters, and podcasts successful business pinch awesome networks for illustration The History Channel and BBC.

It officially stopped producing caller contented successful October 2021 pursuing nan NYT report.