U.S. Attorney Breon S. Peace | U.S. Department of Justice
Carlos Watson, the founder and former CEO of Ozy Media Inc., was sentenced to 116 months in prison by United States District Judge Eric R. Komitee in Brooklyn federal court. Watson faced charges of conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. His conviction came after an eight-week trial concluded in July 2024. Ozy Media was also convicted and received a one-year probation sentence. Further penalties related to forfeiture and restitution are pending.
The announcement of the sentences was made by Breon Peace, United States Attorney for the Eastern District of New York, alongside James E. Dennehy, Assistant Director in Charge at the FBI's New York Field Office.
“Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company, Ozy Media, out of tens of millions of dollars,” stated United States Attorney Peace. He emphasized that Watson's actions showed a blatant disregard for legal norms and honesty in business practices.
FBI Assistant Director Dennehy remarked on Watson's deceptive tactics: “Carlos Watson masqueraded his former company’s composition and purported success to entice investors but ultimately cost them millions when the curated façade collapsed.”
Court documents revealed that between 2018 and 2021, Watson and his associates misled investors about Ozy's financial health through false statements regarding revenue figures, cash reserves, celebrity partnerships, acquisition offers from major corporations, contract negotiations, among other metrics. The fraudulent activities included creating fake contracts with forged signatures and impersonating media executives during investor inquiries.
The fraudulent scheme resulted in over $60 million in actual investor losses with intentions to deceive potential investors out of hundreds of millions more.
Breon Peace holds the position as Chairperson of the White Collar Fraud subcommittee under the Attorney General’s Advisory Committee since July 2022. His role involves recommending strategies for tackling financially motivated crimes like securities fraud.
The prosecution was managed by Assistant U.S. Attorneys Jonathan Siegel, Gillian Kassner, Dylan A. Stern from the Business and Securities Fraud Section with Laura Mantell assisting on forfeiture matters.
