
Audio By Carbonatix
The founder of failed media and entertainment firm Ozy Media, Carlos Watson, has been sentenced to nearly a decade in prison for lying about the company to attract investors.
Prosecutors said the former MSNBC host and ex-Goldman Sachs banker had orchestrated a years-long scheme that resulted in "tens of millions of dollars" of losses for investors.
The court was told Watson and others at Ozy Media falsified information about the firm's finances, relationships with celebrities and acquisition prospects to lure investors.
Watson continues to deny the allegations and says he plans to appeal the verdict.
United States 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 orchestrated a years-long, audacious scheme to defraud investors and lenders to his company", said Breon Peace, US Attorney for the Eastern District of New York.
"His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness".
Watson will remain free for now on a $3m (£2.3m) bond.
He had pleaded not guilty but was convicted in July following an eight-week trial.
In court, Watson said he was a businessman who believed in what his company was doing and had put every effort into trying to make it a success.
His lawyer had argued that he was betrayed by his deputies who had acted on their own volition and hid their wrongdoing from him.
Ozy Media's downfall began in 2021 when a New York Times investigation found that one of its executives impersonated a YouTube representative during a call with investment banking giant Goldman Sachs.
Watson blamed the deception on what he described as his deputy's mental health issues. He added that no harm was caused because Goldman Sachs did not ultimately decide to invest.
In court filings, prosecutors alleged Watson was present during the call and gave his deputy directions on what to say, despite previously denying to the media that he was there.
Ozy Media aimed to emulate the early success of digital news media pioneers like Vice Media and Buzzfeed.
It produced left-leaning podcasts, television series and events, and profiles of rising stars and emerging trends. In 2020, it was valued at $159m.
The scandal-hit company announced in October 2021 that it would close down.
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