U.S. District Judge Eric R Komitee sentenced Watson to 116 months in prison for conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft.
“Carlos Watson hatched a bold scheme for years to defraud investors and lenders to his companies,” said Breon Peace, U.S. Attorney for the Eastern District of New York.
“His persistent and deliberate lies demonstrated not only a blatant disregard for the rule of law, but also a contempt for the values of honesty and fairness.”
Watson currently remains free on $3 million (£2.3 million) bond.
He pleaded not guilty but was found guilty last July after an eight-week trial.
In court, Watson said he was a businessman who believed in what the company was doing and made every effort to make it successful.
His lawyers argued that he was betrayed by his agents, who acted of their own volition and concealed their own wrongdoing.
Ozy Media’s downfall began in 2021, when a New York Times investigation found that one of its executives had impersonated a YouTube representative during a call with investment bank giant Goldman Sachs.
Watson blamed the deception for his deputy’s mental health issues. He added that no damage occurred because Goldman Sachs did not make the final investment decision.
In court papers, prosecutors claimed Watson was present during the call and instructed his representative on what to say, despite previously denying to the press that he was there.
Ozy Media aimed to emulate the early success of digital news media pioneers like Vice Media and Buzzfeed.
We’ve produced left-leaning podcasts, TV series, events, and profiles of rising stars and emerging trends.
It was valued at $159 million (£132 million) in 2020.
