Carlos Watson, the 55-year-old former television presenter and entrepreneur, received a sentence of 116 months in prison on Monday, December 16. The sentence is a result of his involvement in a multi-million dollar fraud scheme tied to his digital media startup, Ozy Media. Watson, a Harvard graduate and former host of Emmy-winning shows, has seen a significant downfall with this sentencing.
The sentence was handed down by U.S. District Judge Eric Komitee in Brooklyn, New York. Watson was found guilty in July 2024, after an eight-week trial on charges such as conspiracy to commit securities fraud, wire fraud, and aggravated identity theft. Ozy Media, his company, was also convicted of similar charges.
Judge Komitee pointed out to Watson that his ability to differentiate between truth and fiction had become severely impaired. He emphasized that the level of dishonesty in this case was extraordinary.
The court found that between 2018 and 2021, Watson had spearheaded a fraudulent operation. He deceived investors through false claims about Ozy’s financial performance, business relationships, and future acquisition opportunities. This led to investors incurring losses exceeding $60 million.
In court on Monday, Watson expressed his love for what he had built with Ozy. He admitted to making errors and expressed his regret for those hurt by his actions, including himself. He stated, “I don’t think it’s fair.”
Ozy Media, established in 2012 and based in Mountain View, California, positioned itself as a digital media platform focused on millennials. It produced newsletters, podcasts, TV shows, and festivals. Watson’s distinguished credentials included degrees from Harvard University and Stanford Law School, along with tenures at CNN and MSNBC.
One of the most damning pieces of evidence involved an executive impersonating a YouTube representative during a call with Goldman Sachs, with Watson providing guidance. Janeen Poutre, the former finance vice president, testified that the company had difficulty covering payroll and rent while grossly exaggerating revenue figures to potential investors.
U.S. Attorney Breon Peace, based in Brooklyn, commented on Watson’s continuous and intentional lies. He stated they not only showed a bold disregard for the law but also a scorn for the principles of honesty and fairness that should be fundamental to American entrepreneurship.
Samir Rao, Watson’s co-founder, and Suzee Han, the former chief of staff, both pleaded guilty and testified against him during the trial. Watson’s defense tried to attribute the misrepresentations to others, particularly Rao and Han. However, prosecutors effectively proved Watson’s central role in the fraud scheme.
The company crumbled in 2021 after a New York Times investigation revealed the YouTube executive impersonation scheme and raised doubts about Ozy’s actual audience size.
Watson, currently out on a $3 million bond, is required to report to prison by March 28, 2025. A hearing to determine restitution is slated for February.
