Carlos Watson Arrested on Charges of Fraud and Misrepresentation in Ozy Media Scheme

Carlos Watson, the founder and chief executive of the digital media company Ozy, was arrested on Thursday on charges of fraud. According to the federal indictment, Watson is accused of engaging in a scheme to defraud Ozy’s investors, potential investors, potential acquirers, lenders and potential lenders.

The charges allege that Watson committed the fraud through material misrepresentations and omissions about Ozy Media, including the company’s finances, investors, business partners, contracts, and potential acquisitions. Prosecutors allege Watson misled potential investors about everything from their revenue and business projections to the company’s audience numbers and the identities of its investors.

The complaint alleges Watson and other company executives misled investors beginning in 2018, including by falsely claiming the company had doubled its revenue from 2016 to 2017. However, the revenue had barely increased from $6 million in 2016 to the following year, the complaint alleges.

Watson’s arrest comes after months of turmoil for Ozy Media, which has been struggling to stay afloat amid the pandemic. The company has laid off dozens of employees and is currently in the process of restructuring its business.

The charges against Watson are a stark reminder of the consequences of fraud and misrepresentation in the business world. It remains to be seen how this case will be resolved, and what the ultimate outcome will be for Ozy Media and its investors.