Ozy Media founder Carlos Watson was sentenced to nearly a decade in prison for lying about his once-popular startup to attract investors.
The former Goldman Sachs banker and former MSNBC host orchestrated a multi-year scheme that cost investors “tens of millions of dollars,” prosecutors said.
The court heard 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 charges and said 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 a bold, multi-year scheme to defraud investors and lenders to his company,” said Breon Peace, United States Attorney for the Eastern District of New York.
“His relentless 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.”
For now, Watson will remain free on $3 million bond.
He pleaded not guilty but was convicted in July after an eight-week trial.
In court, Watson said he was a businessman who believed in what his company was doing and had worked hard to make it successful.
His attorney argued that he was betrayed by deputies who acted on their own accord and concealed their wrongdoing from him.
Ozy Media’s downfall began in 2021 when a New York Times investigation found that one of its executives impersonated a YouTube representative during a call with the investment banking giant Goldman Sachs.
Watson blamed the deception on what he described as the deputy’s mental health problems. He added that no harm was done because Goldman Sachs ultimately did not decide to invest.
In court filings, prosecutors allege Watson was present on the call and directed his deputies what to say, despite previously denying to the media that he was there.
Ozy Media aims to emulate the early success of digital news media pioneers such as Vice Media and Buzzfeed.
It produces left-leaning podcasts, television series and events as well as profiles rising stars and emerging trends.
In 2020, it was valued at $159m (£132m).
