Carlos Watson, the founder and former CEO of Ozy Media Inc., was sentenced to 116 months in prison for leading a multi-million dollar fraud scheme. The sentence was handed down by United States District Judge Eric R. Komitee in Brooklyn federal court. Watson was convicted of conspiracy to commit securities fraud, wire fraud, and aggravated identity theft after an eight-week trial in July 2024.
Ozy Media, which was also found guilty at trial, received a one-year probation sentence. Additional penalties for forfeiture and restitution will be determined later.
United States Attorney for the Eastern District of New York Breon Peace commented on the case, stating: "Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company, Ozy Media, out of tens of millions of dollars." He emphasized that Watson's actions showed a "brazen disregard for the rule of law" and warned that justice would be swift for those engaging in fraud.
FBI Assistant Director in Charge James E. Dennehy remarked on Watson's deception: "Carlos Watson masqueraded his former company’s composition and purported success to entice investors but ultimately cost them millions when the curated façade collapsed."
The fraudulent activities took place between 2018 and 2021 when Watson and his co-conspirators misled investors about Ozy's financial performance through false representations about revenue, business relationships with celebrities, acquisition prospects from technology firms, contract negotiations, and other metrics. They fabricated contracts with forged signatures during due diligence processes and impersonated media executives to conceal their deceitful practices. These actions led to investor losses exceeding $60 million.
Breon Peace plays a significant role as Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee since July 2022. The prosecution team includes Assistant U.S. Attorneys Jonathan Siegel, Gillian Kassner, Dylan A. Stern from the Business and Securities Fraud Section along with Laura Mantell handling forfeiture matters.
Carlos Watson is from Mountain View, California; Ozy Media Inc., based in Mountain View as well; are listed as defendants under docket number E.D.N.Y No. 23-CR-82 (EK).