Former Talk Show Host Carlos Watson Sentenced to Nearly 10 Years in Prison for Fraud Conspiracy
Carlos Watson, the former host of a popular talk show, was sentenced to nearly 10 years in prison for his role in a federal financial conspiracy case. The case, which has been deemed an extreme example of “fake-it-’til-you-make-it” startup culture, involved Watson and his now-defunct company, Ozy Media.
Prosecutors accused Watson, 55, of leading a scheme to deceive investors and lenders by inflating revenue numbers, touting deals and offers that were nonexistent or not finalized, and flashing other false indications of Ozy’s success. The scheme was so severe that one Ozy executive even impersonated a YouTube executive to hype Ozy to investors, with Watson coaching him, according to prosecutors.
Watson has denied the allegations and plans to appeal. In court, he claimed that he was a target of “selective prosecution” as a Black entrepreneur in Silicon Valley, where African American executives are disproportionately few. He also said that he made mistakes and was sorry that people were hurt, but believed the case was “a modern lynching.”
Watson was found guilty of wire fraud conspiracy in August and is now facing a mandatory minimum sentence of two years in prison and a maximum of 37 years. He is currently free on $3 million bond and is expected to surrender to prison in the coming months.
U.S. District Judge Eric Komitee described the “quantum of dishonesty in this case as exceptional,” stating that Watson’s internal apparatus for distinguishing truth from fiction had become badly miscalibrated. During the trial, the defense blamed misrepresentations on other company officials, including co-founder Samir Rao and former chief of staff Suzee Han, who have pleaded guilty and are awaiting sentencing.