Ozy Media CEO Carlos Watson was arrested on Thursday over allegations bordering on securities fraud, and conspiracy to commit wire fraud to the tune of millions of dollars.
Advertisement
Watson is set to be arraigned in federal court in Brooklyn, New York.
The company, Ozy Media had been closed down in 2021 after one of its executives, Mr Samir Rao, tried to swindle investors by impersonating a YouTube executive.
Watson, who is an ex-staff of Goldman Sachs and former host on MSNBC, founded Ozy Media in 2013.
Photo Credit: The Washington Post
Since then, the company has been known for producing podcasts, TV series and promoting events, upcoming stars and latest trends.
Advertisement
As of 2020, the company’s net worth was around $159m (£132m).
The company was said to have been running bankrupt, which led Watson into deceiving investors about the company’s revenue, with false claims that it had strong investments from celebrities plus other companies.
According to prosecutors, “Watson and Rao allegedly impersonated media company executives countless times to cover up fraudulent statements when faced with questions from investors”.
Rao recently pleaded guilty in court to wire fraud conspiracy and identity theft and admitted that he inflated the figures in the company’s financial statement.
Leave a Reply