The sentence came after Watson and the company were convicted in July for repeatedly misrepresenting Ozy’s revenue to get funding. — Bloomberg
New York: Ozy Media chief executive officer Carlos Watson has been sentenced to almost 10 years in prison for lying to investors over his now-defunct digital startup, luring big-name funders and promising backing from the likes of Goldman Sachs Group Inc.
The sentence Monday came after Watson, 55, and the company were convicted in July for repeatedly misrepresenting Ozy’s revenue to get funding.
The case became famous after he directed his co-founder to impersonate a YouTube executive on a call with Goldman bankers.
Prosecutors had urged the judge to impose a prison term of 17 years, saying Watson engaged in “a years-long brazen and audacious” scheme, with victims including former New York Yankees star Alex Rodriguez and an investment firm founded by Laurene Powell Jobs.
Watson’s lawyers had asked for a community service term.
The judge sentenced Watson to nine years and eight months.
He is to begin his prison term on March 28.
Ozy, a once-lauded startup backed by billionaire investor Marc Lasry, collapsed shortly after the New York Times reported on the impersonation in 2021. Prosecutors said Watson told one investor that Google chief executive officer Sundar Pichai had offered to buy Ozy for hundreds of millions of US dollars.
Pichai testified that he never discussed a purchase.
“The quantum of dishonesty in this case is exceptional,” US district judge Eric Komitee said in issuing the sentence in federal court in Brooklyn, New York.
The judge criticised Watson for blaming others instead of taking responsibility.
Seeking leniency ahead of the sentence, Watson’s lawyer Andrew Frisch told the judge that his client was working toward a “vision” for a successful company to benefit his community. — Bloomberg
