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On December 16, 2024, Carlos Watson, the co-founder of Ozy Media, appeared in Brooklyn Federal Court for his sentencing hearing.
In a notable turn of events, President Donald Trump commuted Watson’s criminal fraud sentence on the same day he was set to begin serving a lengthy 116-month prison term in California. This commutation also extended to a probation sentence imposed on Ozy Media following its related conviction, as confirmed by a source with knowledge of the case.
Watson faced a jury trial in Brooklyn federal court in July 2024, where he was found guilty of several serious charges, including conspiracy to commit securities fraud, conspiracy to commit wire fraud, and aggravated identity theft. At the age of 55, he received his sentencing in December.
Further complicating matters, in February, a federal judge mandated that Watson and Ozy Media pay nearly $60 million in forfeiture along with over $36 million in restitution to affected parties.
Arthur Aidala, Watson’s defense attorney, opted not to comment on the commutation when approached by reporters from CNBC. Similarly, a representative from the Brooklyn U.S. Attorney’s Office, which oversaw the prosecution, refrained from commenting on the recent developments.
During Watson’s initial sentencing, Breon Peace, the then-U.S. Attorney for Brooklyn, described Watson’s actions as an “audacious scheme” that spanned several years, wherein he defrauded investors and lenders out of millions of dollars intended for Ozy Media.
Prosecutors accused Watson and his accomplices of misleading investors from 2018 to 2021 regarding Ozy’s financial health, ongoing business relationships, acquisition potential, and contract negotiations.
Ozy Media’s operations came to a sudden halt in October 2021, following revelations from The New York Times. The report disclosed that Samir Rao, the company’s chief operating officer, had impersonated a YouTube executive during a conference call with Goldman Sachs, which was involved in discussions over a potential $40 million investment in the company.
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