Share
News

Federal Authorities Arrest Founder of 'Woke' Media Company at Manhattan Hotel

Share

The founder of the troubled digital startup Ozy Media was arrested Thursday on fraud charges related to a scheme to prop up the financially struggling company, which hemorrhaged millions of dollars before it shut down amid revelations of possibly deceptive business practices.

The arrest of Carlos Watson at a hotel in Manhattan, New York, came after two of the company’s top executives pleaded guilty this month to fraud charges, including Ozy’s then-chief operating officer, Samir Rao, who allegedly impersonated a YouTube executive during a pitch to Goldman Sachs, a potential investor.

The guilty pleas were first reported by The Wall Street Journal.

The indictment accuses Watson of conspiring to commit securities fraud and wire fraud, as well as identity theft for his alleged role in the impersonation of several media executives.

“We are really disappointed,” Watson’s attorney, Lanny Breuer, told the Journal after the arrest.

Trending:
KJP Panics, Hangs Up in Middle of Interview When Reporter Shows He Isn't a Democratic Party Propagandist

“We have been acting in good faith and believe we had a constructive dialogue with the government and are shocked by the actions this morning,” Breuer said.

Scrutiny over the company deepened after The New York Times reported in October 2021 that an Ozy official had masqueraded as a YouTube executive in a failing attempt to get Goldman Sachs to infuse money into the struggling enterprise.

Shortly after, Ozy said it was shutting down.

“As alleged, Carlos Watson is a con man whose business strategy was based on outright deceit and fraud,” said Breon Peace, the U.S. attorney for the Brooklyn-based Eastern District of New York. “He ran Ozy as a criminal organization rather than as a reputable media company.”

Ozy hosted former Democratic presidential candidate Hillary Clinton at its eponymous festival in 2018, which was described by The Washington Post as showcasing a “progressive alternate reality.”

In 2021, The Telegraph called Ozy a “Woke media company” while reporting on Rao’s impersonation scandal.

Michael J. Driscoll, the assistant director-in-charge of the FBI’s New York field office, said Watson “repeatedly attempted to entice both investors and lenders through a series of deliberate deceptions and fabrications.”

Related:
Former MSNBC Host Chuck Todd Furious After Network Hires Former RNC Chair Ronna McDaniel

Authorities say Watson and his business partners, between 2018 and 2021, attempted to defraud investors and lenders of “tens of millions of dollars through fraudulent misrepresentations and omissions” about the company’s debts and other key financial information.

On multiple occasions, the U.S. attorney’s office said, Watson and his colleagues pretended to be other media executives to cover up earlier misrepresentations.

The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
, , , , , , , , , , ,
Share
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands. Photo credit: @AP on Twitter
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation