Business
Ozy Media Co-Founder Found Guilty of Fraud
Learn about the legal troubles faced by one of the co-founders of Ozy Media as they are found guilty of fraud. Explore the implications and aftermath of this significant development in the media industry.
A federal jury reached a verdict on Tuesday in the case of Carlos Watson and Ozy Media, the digital media company he helped establish, finding them guilty of attempting to deceive investors and lenders to boost the prospects of the startup. The jury’s decision followed an eight-week trial and three days of deliberation, during which prosecutors accused Mr. Watson of engaging in a conspiracy to commit securities and wire fraud.
Throughout the trial, various witnesses shed light on the deceptive practices within the company, such as impersonated phone calls, forged contracts, and misleading statements regarding Ozy’s financial performance. Prosecutor Gillian Kassner stated during the closing arguments that “Watson was aware of Ozy’s struggles, but was determined to portray the company and himself as the next big success, regardless of the truth.”
Mr. Watson now faces the possibility of a sentence of up to 37 years in prison as a result of the verdict.
Defending Claims
During the proceedings, Mr. Watson’s defense team attempted to shift blame onto other Ozy employees for any alleged fraudulent activities. They argued that Mr. Watson’s representations to investors were made in good faith and were based on genuine assessments of Ozy’s financial situation. Mr. Watson himself contended that any revenue estimates he provided were not intentionally inflated, but rather reflected the typical income streams for a young, growing company.
Co-founder Samir Rao and former Ozy chief of staff Suzee Han had previously pleaded guilty to fraud charges and collaborated with the prosecution in the case against Mr. Watson, providing testimony against him.
About Ozy Media
Founded in 2013 by Carlos Watson, Ozy Media initially focused on publishing news articles and newsletters before expanding into podcast and television production. The startup managed to secure investments from notable backers during a period when digital media companies like BuzzFeed and Vice were attracting significant funding, despite many of these investments not yielding the expected results.