Carlos Watson, Securities Fraud, New York 2024

Carlos Watson, founder and CEO of OZY Media Inc., was indicted in a years-long multi-million dollar fraud scheme.

An indictment was unsealed this morning in federal court in Brooklyn charging OZY Media Inc. and its founder Carlos Watson with conspiracy to commit securities fraud and conspiracy to commit wire fraud in connection with a scheme to defraud OZY’s investors and lenders by making material misrepresentations about OZY’s financial and business assets.

Watson is also charged with aggravated identity theft for his role in the impersonation of multiple media company executives in communications with OZY’s lenders and prospective investors in furtherance of the fraud schemes.

Watson was arrested this morning and will be arraigned later today before United States Magistrate Judge Cheryl L. Pollak.

If convicted, Watson faces a mandatory minimum sentence of two years’ imprisonment and a maximum sentence of 37 years’ imprisonment.

Watson’s co-conspirators Samir Rao, OZY’s Chief Operating Officer, and Suzee Han, OZY’s Chief of Staff from June 2019 to October 2021, previously pleaded guilty to charges relating to their roles in the scheme.

The U.S. Securities and Exchange Commission (SEC) is taking concurrent enforcement action.

According to the indictment, OZY is a media and entertainment company whose businesses include digital newsletters, television production, podcasts, and live events.

Between approximately 2018 and 2021, Watson and his co-conspirators orchestrated a scheme to defraud investors in and lenders to OZY of tens of millions of dollars through fraudulent misrepresentations and omissions about key aspects of OZY’s business.

Watson was arrested on May 7, 2024, and will be arraigned later today.

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