Caribbean Heritage, Ozy Media Co-Founder Faces Up To 37 Years in Jail

News Americas, New York, NY, July 17, 2024: Carlos Watson, the Caribbean heritage co-founder of Ozy Media, now faces up to 37 years in prison after a federal jury found him guilty of defrauding investors and lenders. The jury reached their verdict after three days of deliberation, following an eight-week trial that uncovered numerous deceptive practices within the company.

Carlos Watson, the Jamaican American co-founder and chief executive officer of Ozy Media Inc., center, arriveing at federal court in the Brooklyn borough of New York, US, on Friday, June 7, 2024. Watson was found guilty on charges that he conspired to defraud investors in Ozy Media, the digital media start-up he co-founded on July 16, 2024. Photographer: Yuki Iwamura/Bloomberg via Getty Images

What Happened to Ozy Media Co-Founder?

Prosecutors accused Watson of conspiracy to commit securities and wire fraud. They presented detailed evidence of deceptive actions, which included impersonated phone calls, fabricated contracts, and inflated claims about Ozy’s financial health. “Watson knew the company was failing, but he was determined to turn Ozy and himself into the next big thing, and he wasn’t going to let the truth stand in his way,” stated Gillian Kassner, the prosecutor, during closing arguments in U.S. District Court in the Eastern District of New York.

Watson’s defense team argued that any fraudulent activities were the responsibility of other Ozy employees. Watson himself testified during the trial. He stated that his representations to investors were based on genuine assessments of Ozy’s finances. He also claimed that any discrepancies were typical of a young start-up’s growing pains. Despite these defenses, the jury was not persuaded.

Watson, born and raised in Miami, Florida, is one of four siblings born to Jamaican parents. His early life saw him navigate numerous challenges, including an early expulsion from kindergarten. Watson graduated from Harvard University. Afterward, he played significant roles in political campaigns. These roles included managing Bill Clinton’s 1992 Election Day effort in Miami-Dade County, Florida. Later, he attended Stanford Law School, where he served as an editor of the Stanford Law Review and as president of the Stanford Law School Student Government.

After a stint at McKinsey & Company, Watson co-founded Achieva College Prep Service, which he sold to Kaplan, Inc. in 2002. He later became the Global Head of Education Investment Banking for Goldman Sachs and co-founded College Track with Laurene Powell Jobs in 1997.

Watson’s media career began in earnest in 2002 with guest appearances on Fox News and Court TV. He joined CNBC in early 2003 and moved to CNN later that year, where he became a well-known political commentator. His work on CNN was particularly notable during the 2004 presidential election. His hosting of “Meet the Faith” on BET further established him as a prominent media figure.

In 2013, Watson co-founded Ozy Media with Samir Rao, raising over $70 million from notable investors. Ozy expanded into TV shows and podcasts. They formed partnerships with major media entities like A&E Networks, iHeart Media, and Live Nation. However, the company faced scrutiny in 2021 when a New York Times article exposed potentially fraudulent practices. Watson dismissed the article as a “ridiculous hitjob,” but the damage to Ozy’s reputation was significant.

Sharon Osbourne, wife of rock star Ozzy Osbourne, accused Watson of falsely claiming the couple had invested in Ozy. Watson clarified that the Osbournes received shares as part of a legal settlement, though Osbourne denied ever accepting such offers.

In February 2023, Watson was arrested on fraud charges, shortly after Samir Rao pleaded guilty. Prosecutors alleged that Watson misled investors about Ozy’s financial performance and audience metrics. Despite Watson’s not guilty plea and vigorous defense on Twitter, the evidence presented at trial led to his conviction.

Watson’s trial, presided over by Judge Eric R. Komitee featured testimonies from high-profile figures. These included Google CEO Sundar Pichai, who refuted claims of a $600 million acquisition offer for Ozy. Jury deliberations began on July 12. They culminated in the guilty verdict that now sees Watson facing a potential 37-year prison sentence.