Former discuss present host Carlos Watson was sentenced Monday to just about 10 years in jail in a federal monetary conspiracy case that solid his once-buzzy Ozy Media as an excessive of fake-it-’til-you-make-it startup tradition.
So excessive that one other Ozy government impersonated a YouTube government to hype Ozy to funding bankers — whereas Watson coached him, prosecutors mentioned.
Watson, 55, and the now-defunct firm have been discovered responsible final summer time of costs together with wire fraud conspiracy. He has denied the allegations.
Watson, who has been free on $3 million bond, confronted a compulsory minimal sentence of two years in jail and doubtlessly as a lot as 37 years.
Prosecutors accused the previous cable information commentator and host of taking part in a number one position in a scheme to deceive Ozy buyers and lenders by inflating income numbers, touting offers and presents that have been nonexistent or not finalized, and flashing different false indications of Ozy’s success.
Watson even listened in and texted speaking factors whereas his co-founder posed as a YouTube government to reward Ozy on a cellphone name with potential buyers, prosecutors mentioned.
“The quantum of dishonesty in this case is exceptional,” US District Choose Eric Komitee mentioned, later telling Watson: “Your internal apparatus for separating truth from fiction became badly miscalibrated.”
Watson blamed any misrepresentations on others, and he mentioned he was a goal of “selective prosecution” as a black entrepreneur in Silicon Valley, the place African American executives have been disproportionately few.
“I loved what we built with Ozy,” he mentioned in courtroom Monday, initially addressing supporters within the viewers earlier than the decide urged he flip round. He portrayed himself as a founder who put the whole lot he had into his firm, saying that he took a mean wage round $51,000 from Ozy in its closing years, has triple-mortgaged his house and drives a 15-year-old automotive.
The co-founder, Samir Rao, and former Ozy chief of workers Suzee Han pleaded responsible and are awaiting sentencing. Each testified towards Watson.
Ozy, based in 2012, was styled as a hub of reports and tradition for millennials with a worldwide outlook.
Watson boasted a powerful resume: levels from Harvard College and Stanford Legislation College, a stint on Wall Avenue, on-air gigs at CNN and MSNBC, and entrepreneurial chops. Ozy Media was his second startup, coming a decade after he offered a test-prep firm that he had based whereas in his 20s.
Mountain View, Calif.-based Ozy produced TV reveals, newsletters, podcasts, and a music-and-ideas pageant. Watson hosted a number of of the TV applications, together with the Emmy-winning “Black Women OWN the Conversation,” which appeared on the Oprah Winfrey Community.
Ozy snagged huge advertisers, purchasers and grants. However beneath the outward indicators of success was an overextended firm that struggled — and dissembled — to remain afloat after 2017, in keeping with insiders’ testimony.
The corporate strained to make payroll, ran late on hire and took out expensive money advances to pay payments, former finance vp Janeen Poutre informed jurors. In the meantime, Ozy gave potential buyers a lot greater income numbers than these it reported to accountants, in keeping with testimony and paperwork.
On the witness stand in July, Watson mentioned the corporate’s money squeezes have been only a startup norm and its buyers knew they have been getting unaudited numbers that would change.
Ozy disintegrated in 2021, after a New York Occasions column disclosed the phone-call impersonation gambit and raised questions in regards to the true dimension of the startup’s viewers.
