• Mon. May 27th, 2024

Who Is Carlos Watson? Ozy Media Founder Arrested for Fraud


Feb 23, 2023
Who Is Carlos Watson? Ozy Media Founder Arrested for Fraud


The problematic and scandal-ridden Ozy Media has been in and out of headlines above the past year and a 50 % in excess of surprising allegations that the enterprise was associated in a collection of fraudulent strategies (between other allegations pertaining to the actions of its govt board), probing an investigation by the U.S. Section of Justice and the Securities and Exchange Commission.

The investigation took a startling convert when Ozy co-founder Samir Rao pleaded responsible to fraud rates before this week, major to the arrest of co-founder and chief govt Carlos Watson on Thursday afternoon at a hotel in New York Metropolis.

Court docket files point out that Watson actively “engaged in a scheme to defraud Ozy’s investors, prospective traders, potential acquirers, lenders and likely loan companies” and did so by lying about Ozy’s fiscal standings, likely earnings and acquisitions, and a lot more.

Connected: ‘Ignore Your Schedule’: The Negative Information that Ozy Media’s Carlos Watson Gave to Entrepreneur

According to the Wall Avenue Journal, Watson was attempting to lock down “tens of thousands and thousands of pounds” from traders in purchase to shell out off the firm’s financial debt. He was officially charged with conspiring to commit securities fraud and wire fraud and faces a highest sentence of 37 several years in prison.

The probe into Rao and Watson commenced after a bombshell New York Instances short article was unveiled in 202, which alleged that Rao pretended to be a YouTube government whilst on a call with Goldman Sachs in an try to secure cash. Watson later on blamed Rao’s actions on a “very individual psychological wellbeing challenge” in a letter to employees and called the Instances article a “hitjob.”

“I am deeply dissatisfied by the events of today,” Watson’s attorney, Lanny Breuer, wrote in a statement to CNN. “We ended up engaged in a fantastic religion and constructive dialogue with the Government. Specified the Department’s claims of selling these types of dialogue, I do not realize the spectacular determination to arrest Carlos currently.”

Just previously this thirty day period, Watson pitched traders on the rebirth of the media corporation at the MAGNA Equity Upfronts in Manhattan.

The pending investigation and earlier allegations ended up not stated all through the 30-moment presentation.

Ozy launched in September 2013 less than the ownership and guise of Watson and Rao. Ozy generated a series of in-dwelling Television set displays, newsletters and podcasts in partnership with key networks like The Record Channel and BBC.

It officially stopped creating new content material in October 2021 pursuing the NYT report.

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