A Former Media Mogul Gets a Second Chance

The former leader of a once-promising media company got a break just before heading to prison. Carlos Watson, co-founder of Ozy Media, had his nearly 10-year sentence reduced by the then-president. This happened just hours before he was set to begin his prison term for financial fraud. Media industry insiders were surprised by the news. Watson's company, Ozy Media, was known for its ambitious goals and unique perspective. It aimed to offer a fresh take on politics and culture, focusing on minority and marginalized voices. The company produced a variety of content, including TV shows, podcasts, and newsletters. Watson even hosted several TV programs, such as the Emmy-winning "Black Women OWN the Conversation" on the Oprah Winfrey Network. Ozy Media seemed to have it all: big advertisers, notable clients, and impressive grants. However, behind the scenes, the company was struggling. It had trouble making payroll, paying rent on time, and even took out expensive cash advances to cover bills. To make matters worse, Ozy was inflating its revenue numbers to attract investors. Watson's actions did not go unnoticed. He was arrested in February 2023 after two top executives pleaded guilty to fraud charges. Prosecutors accused Watson of deceiving investors and lenders by inflating revenue numbers and misrepresenting deals. At one point, Watson's co-founder even pretended to be a YouTube executive to impress potential investors. The case against Watson was closely watched, as it highlighted the struggles of a startup in a turbulent media landscape. Watson, who is Black, argued that he was a victim of "selective prosecution" and called the case "a modern lynching. " He admitted to making mistakes but maintained that he did not deserve the harsh sentence. The former president has a history of using his power to commute sentences and issue pardons. He has done so for individuals he believes were treated unfairly by the justice system. Watson's commutation was part of a series of clemency acts revealed by the White House. Other recipients included Trevor Milton, the founder of electric vehicle company Nikola, and three entrepreneurs behind the cryptocurrency exchange BITMEX. Ozy Media shut down in fall 2021, just days after a New York Times column raised questions about the company's claims of millions of viewers and readers. The column also pointed out a potential case of securities fraud. The company's collapse serves as a cautionary tale about the dangers of dishonesty and the importance of transparency in the media industry.