Ozy Media and founder Carlos Watson had been convicted of fraud by a Brooklyn federal jury on Tuesday, in a case accusing them of mendacity to buyers in regards to the now-defunct startup’s funds and sham offers with Google and Oprah Winfrey.
Watson, a former cable information anchor and funding banker, and Ozy had been every convicted of securities fraud conspiracy and wire fraud conspiracy, whereas Watson was additionally convicted of id theft. Each had pleaded not responsible.
Federal prosecutors stated Watson and his California-based information and leisure firm falsified details about Ozy’s funds and viewers measurement, fabricated contracts and inflated earnings projections to court docket buyers.
Based in 2013, Ozy imploded in 2021 after information experiences questioned its viewers numbers and revealed {that a} high govt had impersonated a YouTube govt throughout a name with Goldman Sachs bankers wherein he claimed the streaming website agreed to pay for unique rights to an Ozy present.
Prosecutors stated Watson may face about 24 to 29 years in jail underneath beneficial federal sentencing tips, together with a compulsory two years for id theft. His sentencing is ready for Nov. 18.
“Ozy Media in the end collapsed underneath the burden of Watson’s dishonest schemes and with right now’s verdict, Watson himself has been held accountable for his brazen crimes,” Brooklyn US Legal professional Breon Peace stated in a press release.
Legal professionals for Watson and Ozy didn’t instantly reply to requests for remark.
Watson’s lawyer had instructed jurors that Watson was betrayed by deputies who acted on their very own and stored him at the hours of darkness about their wrongdoing.
The decision follows a six-week trial that featured testimony by two former Watson deputies, who pleaded responsible to fraud.
They instructed jurors they conspired with Watson to cover Ozy’s crippling debt, meager money reserves and sluggish development.
Ozy folded shortly after The New York Instances reported on former chief working officer Samir Rao’s impersonation of the YouTube govt.
Watson denied involvement within the incident, although prosecutors stated contemporaneous chat logs present he coached Rao on what to say.
The YouTube govt Alex Piper and Google CEO Sundar Pichai testified for the federal government, saying they by no means had offers with Ozy or thought-about shopping for it at any value, opposite to Watson’s claims to buyers.
Prosecutors stated Watson additionally assured buyers that Ozy was thriving at the same time as its money reserves sank to $19,000 in 2018 and it struggled to pay hire, wages and different fundamental bills.
Watson testified for a number of days in his personal protection. He stated prosecutors’ view of Ozy’s funds was simplistic and failed to understand the nuances of media trade dealmaking. He additionally blamed destructive press protection for Ozy’s demise.
Throughout cross-examination, Watson was at occasions evasive in regards to the inconsistent income figures Ozy supplied to buyers.
He additionally declined a prosecutor’s request to interrupt down Ozy’s annual income in money somewhat than future potential earnings.
“That’s not the way in which I’ve considered it earlier than and that’s not the way in which our buyers considered it,” he stated.
