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Ozy Media founder Carlos Watson has been sentenced to nearly a decade in prison for lying about his once-hot startup to attract investors.
Prosecutors said the former Goldman Sachs banker and former MSNBC host had orchestrated a years-long scheme that resulted in “tens of millions of dollars” in losses for investors.
The court was told that Watson and others at Ozy Media falsified information about the company’s finances, celebrity relationships and acquisition prospects to attract investors.
Watson continues to deny the allegations and says he plans to appeal the verdict.
U.S. District Judge Eric R. Komitee sentenced Watson to 116 months in prison for conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft.
“Carlos Watson orchestrated an audacious, years-long scheme to defraud his company’s investors and lenders,” said Breon Peace, U.S. Attorney for the Eastern District of New York.
“His incessant and deliberate lies demonstrated not only a blatant disregard for the rule of law, but also a disregard for the values of honesty and justice.”
Watson will remain free for now on $3m (£2.3m) bail.
He pleaded not guilty but was found guilty in July after an eight-week trial.
In court, Watson said he was a businessman who believed in what his company did and had put in every effort to try to make it a success.
His lawyer had argued that he was betrayed by his aides, who acted of their own free will and hid their wrongdoing from him.
Ozy Media’s downfall began in 2021 when a New York Times investigation found that one of its executives posed as a YouTube representative during a call with investment banking giant Goldman Sachs.
Watson attributed the deception to what he described as his deputy’s mental health problems. He added that no harm was done because Goldman Sachs ultimately did not decide to invest.
In court documents, prosecutors alleged that Watson was present during the call and gave his deputy instructions on what to say, despite previously denying to the media that he was there.
Ozy Media aimed to emulate the early success of digital news media pioneers like Vice Media and Buzzfeed.
He produced left-leaning podcasts, series and television events, and profiles of rising stars and emerging trends.
In 2020, it was valued at $159 million (£132 million).
