In a shocking turn of events, Ozy Media founder and CEO Carlos Watson was found guilty of securities fraud, identity fraud, and other charges in a federal court in Brooklyn on July 16, 2024. The verdict comes after an eight-week trial that exposed the deception at the digital media company.
The jury's decision follows revelations that Watson coached his co-founder, Samir Rao, to impersonate a YouTube executive during a call with Goldman Sachs in an attempt to secure investment for Ozy. The executives also misrepresented Ozy's finances and audience numbers to backers and investors.
The fraudulent activities at Ozy were first brought to light in 2021 when an article in the New York Times revealed that Rao had pretended to be a YouTube executive during the call with Goldman Sachs. Watson was also charged with misrepresenting Ozy's finances and audience numbers.
Rao and former chief of staff Suzee Han both pleaded guilty to charges last year and are cooperating with the government. They were named alongside Watson in a separate SEC lawsuit.
The trial saw testimony from Google CEO Sundar Pichai, who confirmed that there were no deals between Ozy and Google or any plans to buy the media company at any price. The revelations led to Ozy shutting down shortly after the NYT story.
Watson's lawyers argued that he did not intentionally inflate revenue estimates but rather presented typical income for a young company in its early years. However, the jury was not convinced and found Watson guilty of fraud.
The sentencing is scheduled for November, and Watson faces up to 37 years in prison.
