Carlos Watson, the company’s creator, now faces unchallengeable accusations as a result of the Ozy Media controversy.
Days after Samir Rao, a former corporate executive, pled guilty to fraud charges, the founder of Ozy Media was detained.
Carlos Watson, the company’s creator, now faces unchallengeable accusations as a result of the Ozy Media controversy.
The allegations unquestionably harmed the company’s reputation. Days after Samir Rao, a former corporate executive, pled guilty to fraud charges, the founder of Ozy Media was detained.
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After a New York Times investigation revealed Mr. Rao had attempted to defraud investors by posing as a YouTube official, Ozy Media was shut down in 2021.
Mr. Watson “led a scheme to defraud investors” of millions of dollars, according to federal authorities.
The Securities and Exchange Commission and the US Department of Justice have both opened investigations into the business.
2013 saw the establishment of Ozy Media in California. The organisation created podcasts, television programmes, live events, and profiles of up-and-coming artists and fashion trends that were all left-leaning. In 2020, the company was worth $159 million (£132 million).
According to federal prosecution records, Mr. Watson misrepresented to investors about the company’s earnings and fraudulently stated that high-profile organisations and celebrities had made investments despite knowing that Ozy Media was “drowning in debt.”
Mr. Watson misled his clients by keeping them in the dark about the company’s present financial status while outright lying to obtain investments.
On February 23, 2023, Mr. Watson was arrested. He will likely be charged with conspiring to commit securities fraud and conspiring to commit wire fraud before a federal court hearing in Brooklyn, New York.
The New York Times discovered that Ozy Media executive Rao had impersonated a YouTube official on a call with Goldman Sachs, bragging about YouTube’s successful partnership with Ozy as the bank was considering investing. This was the beginning of Ozy Media’s demise.
When this information surfaced, Watson defended his business’s standing by putting Samir Rao on trial.
He claimed that Samir has some mental health problems. While Goldman Sachs ultimately chose against investing, he described the entire situation as being neutral.
After initially denying to the public that he was there, prosecutors now claim that Mr. Watson was present during the call and was “texting Rao guidance of what to say.”
Watson and Rao impersonated several executives to deceive prospective customers on numerous occasions.
When Rao came forward and acknowledged to conspiring in securities fraud, wire fraud, and identity theft, the situation was reversed.
He also acknowledged to the judge that he exaggerated the company’s finances and made false statements to investors.
Suzee Han, the business’s former chief of staff, pled guilty to securities fraud and a conspiracy to commit wire fraud, according to court documents filed in federal court.
