Former television host and media entrepreneur Carlos Watson, 55, was sentenced to 116 months in prison on Monday, December 16 for orchestrating a multi-million dollar fraud scheme through his digital media startup, Ozy Media. The sentencing marks the end of a dramatic fall for the Harvard graduate who once hosted Emmy-winning programming.
U.S. District Judge Eric Komitee delivered the sentence in Brooklyn, New York, after Watson was convicted in July 2024 following an eight-week trial on charges including conspiracy to commit securities fraud, wire fraud, and aggravated identity theft. The company, Ozy Media, was also found guilty.
“Your internal apparatus for separating truth from fiction became badly miscalibrated,” Judge Komitee told Watson, noting that the “quantum of dishonesty in this case is exceptional.”
Prosecutors demonstrated that between 2018 and 2021, Watson, 55, led a scheme to defraud investors of tens of millions of dollars through false representations about Ozy’s financial performance, business relationships, and acquisition prospects. The fraud resulted in actual investor losses exceeding $60 million.
“I loved what we built with Ozy,” Watson said in court Monday, addressing supporters before the judge redirected him. “I made mistakes. I’m very, very sorry that people are hurt, myself included,” but “I don’t think it’s fair.”
The Mountain View, California-based company, founded in 2012, positioned itself as a millennial-focused digital media platform, producing newsletters, podcasts, TV shows, and festivals. Watson’s impressive background included degrees from Harvard University and Stanford Law School, along with stints at CNN and MSNBC.
One of the most damaging revelations involved another executive impersonating a YouTube representative during a call with Goldman Sachs, while Watson provided coaching. Former finance vice president Janeen Poutre testified that the company struggled to make payroll and fell behind on rent while presenting inflated revenue figures to potential investors.
“His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness that should underlie American entrepreneurship,” said Brooklyn-based U.S. Attorney Breon Peace.
Watson’s co-founder Samir Rao and former chief of staff Suzee Han both pleaded guilty and testified against him during the trial. While Watson’s defense attempted to blame misrepresentations on others, particularly Rao and Han, prosecutors successfully demonstrated his leading role in the fraudulent scheme.
The company collapsed in 2021 following a New York Times investigation that exposed the YouTube executive impersonation scheme and raised questions about Ozy’s actual audience size.
Watson remains free on $3 million bond and must surrender to prison by March 28, 2025. A hearing to determine restitution is scheduled for February.
