Ozy Media founder Carlos Watson has been sentenced to nearly a decade in prison for lying about his once-trendy startup to attract investors.
Prosecutors said the former Goldman Sachs banker and former MSNBC host orchestrated a years-long scheme that resulted in losses of “tens of millions of dollars” for investors.
The court heard 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.
United States 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 a brazen, years-long scheme to defraud his company’s investors and lenders,” said Breon Peace, United States Attorney for the Eastern District of New York.
“His incessant and deliberate lies demonstrate not only a blatant disregard for the rule of law, but also a disregard for the values of honesty and fairness.”
Watson will remain free for now on $3 million (£2.3 million) bail.
He had pleaded not guilty but was found guilty in July following an eight-week trial.
In court, Watson said he was a businessman who believed in what his company was doing and had made every effort to make it a success.
His lawyer had argued that he was betrayed by his deputies who acted of their own accord 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 the investment banking giant Goldman Sachs.
Watson blamed the deception on what he described as his deputy's mental health issues. He added that no harm was caused because Goldman Sachs ultimately did not decide to invest.
In court filings, 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 has produced left-leaning podcasts, TV series, and events, as well as profiles of rising stars and emerging trends.
In 2020, it was valued at $159 million (£132 million).
