February 24th 2023.
More than one year after the closing of the media company following its loss of millions of dollars, the CEO of Tony Media, Carlos Watson, was apprehended and charged with fraud. According to CNN, the originator of the startup business Ozy Media was apprehended on Thursday in relation to the allegations of having engaged in a scheme to defraud OZY’s investors, potential investors, potential acquirers, lenders and potential lenders.
A spokesperson from the Department of Justice declared that Watson was freed on a $1 million bond and is due back in court on March 8. If he is found guilty of the crimes, Watson will face a required minimum sentence of two years in prison and a maximum of 37 years.
Breon Peace, the United States Attorney for the Eastern District of New York commented, “As alleged, Carlos Watson is a con man whose business strategy was based on outright deceit and fraud – he ran Ozy as a criminal organization rather than as a reputable media company.”
Watson was arrested by the FBI Thursday morning at the Hotel NH Collection at 22 East 38th St. in Manhattan.
The New York Times' report about the alleged deceptive practices taken part in by both Watson and the company caused Ozy Media to start to unravel.
In an e-mailed statement to CNN, Watson’s lawyer, Lanny Breuer, verified that his client had been arrested and was surprised that the government took such a “dramatic” decision.
“I am deeply disappointed by the events of today. We were engaged in a good faith and constructive dialogue with the Government. Given the Department’s claims of promoting such dialogue, I do not understand the dramatic decision to arrest Carlos today.”
The Associated Press also reported that Watson was charged by the Securities and Exchange Commission in a parallel civil case. Watson and Ozy Media were accused of defrauding investors of approximately $50 million “through repeated misrepresentations concerning the company’s basic financial condition, business relationships, and fundraising efforts.”
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