Former TV Personality Carlos Watson Convicted in Ozy Media Financial Conspiracy Case

Former TV personality Carlos Watson was convicted in a federal financial conspiracy case involving Ozy Media, a startup that collapsed after executives engaged in fraudulent activities to deceive investors and lenders. Watson was found guilty of conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft.

Prosecutors alleged that Watson conspired to keep the cash-strapped company afloat by deceiving investors and lenders. Despite pleading not guilty and denying the allegations, Watson was unable to convince the jury of his innocence. The defense shifted blame to Ozy co-founder and Chief Operating Officer Samir Rao, who had already pleaded guilty.

Ozy Media, founded by Watson in 2012, initially gained recognition for producing shows, awarding college students, and hosting high-profile events. However, behind the company’s hip public image, financial troubles began to surface in 2018. Former finance Vice President Janeen Poutre testified that Ozy frequently struggled to meet financial obligations and resorted to taking out expensive loans to cover expenses.

Prosecutors revealed that Ozy inflated revenue numbers to attract investors and claimed deals that were not secured. Rao went to extreme lengths, including impersonating a YouTube executive, to fabricate information and secure investments. The company’s downfall was accelerated after a New York Times article exposed Rao’s fraudulent activities.

Despite Watson’s claims of focusing on content and partnerships rather than financial details, the jury found him guilty of participating in the fraudulent scheme. Ozy Media’s collapse serves as a cautionary tale of the consequences of financial deceit in the startup world. Watson’s sentencing is pending, while Rao awaits his fate after admitting to his role in the conspiracy.