Carlos Watson, former CEO of Ozy Media, was sentenced on Monday, December 16, to nearly 10 years in prison for his involvement in a federal financial conspiracy case. Watson has denied the charges against him and plans to appeal the sentence.

Who is Carlos Watson?

Carlos Watson, 55, is a former news anchor and talk show host who worked for major networks such as CNN and MSNBC, and he also spent some time on Wall Street. He is a graduate of Harvard University and Stanford Law School.

What is Carlos Watson accused of?

Prosecutors accused the former commentator and cable news host of playing a central role in a scheme to defraud investors and lenders of Ozy by inflating revenue figures, promoting nonexistent or unfinalized deals and offers, and creating a false impression of the company’s success.

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Watson and Ozy Media, now defunct, were found guilty last summer of several charges, including conspiracy to commit wire fraud.

During the hearing, Watson claimed he was the target of selective prosecution due to being a Black entrepreneur in Silicon Valley, a place where African American executives are notably scarce, and he described the case as a “modern-day lynching.”

Carlos Watson, who faced a mandatory minimum sentence of two years and potentially up to 37 years in prison, remains free on a $3 million bail. He is expected to surrender to authorities in the coming months to begin serving his sentence.

What is Ozy Media?

Founded in 2012 in Mountain View, California, Ozy Media was created as a news and culture platform targeting millennials, with a global perspective.

This was Carlos Watson’s second startup, which he launched a decade after selling an exam preparation company he founded when he was just 20 years old.

The company produced a variety of content, including TV shows, newsletters, podcasts, and a music and ideas festival. Watson hosted several of these programs, including the Emmy Award-winning Black Women OWN the Conversation, which aired on the Oprah Winfrey Network.

Ozy attracted major advertisers, clients, and funding, but according to insiders, beneath its successful exterior, the company was struggling and hiding its financial difficulties after 2017.

The company had trouble meeting payroll, fell behind on rent payments, and requested expensive cash advances to cover bills, former VP of finance Janeen Poutre testified. Meanwhile, Ozy presented inflated revenue figures to potential investors, much higher than those reported to accountants, according to documents and testimony presented at trial.

Ozy Media ultimately collapsed in 2021 after a New York Times investigation exposed its use of identity deception through phone calls and raised questions about the actual size of the company’s audience.

Who did Carlos Watson defraud?

One of the victims of the fraud was his sister, Beverly Watson, who expressed her support for Carlos during the trial on Monday. Beverly stated that her greatest loss was the significant platform that gave visibility to people and ideas that were previously unheard.

However, the judge noted that another investor had sent a letter to the court claiming that Carlos Watson had mismanaged his trust.