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Ozy Media co-founder Carlos Watson, a former personality at both MSNBC and CNN, was arrested on fraud charges Thursday.
Watson, 53, is charged with conspiracy to commit securities fraud and conspiracy to commit wire fraud related to a "scheme to defraud Ozy’s investors and lenders" by misrepresenting Ozy’s financial and business assets. He is also charged with aggravated identity theft for his role in former Ozy executive Samir Rao's infamous phone call.
Ozy, which launched in 2013 and has been troubled for years, published left-leaning, youth-focused content about current events and liberal culture. The media brand’s website boasts about spotlighting "Alexandria Ocasio Cortez when she was working as a bartender in the Bronx" and states part of its mission is to "Reset America." The embattled company was best known for its Ozy Fest events.
Watson, who is expected to be arraigned in a Brooklyn, N.Y., federal court, was arrested after Rao pleaded guilty to fraud charges in a "secretive federal court proceeding," the Wall Street Journal first reported. The co-founders have long been suspected of misleading potential investors and advertisers.
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Ozy first came under fire in 2021 when The New York Times reported Rao impersonated a YouTube executive during a fundraising call with Goldman Sachs honchos. Rao stepped down shortly after his impersonation was made public in the Times report about a "$40 million conference call gone wrong."
Ozy Media co-founder Carlos Watson was arrested on fraud charges Thursday.
