‘Con Man’: Ozy Media CEO Carlos Watson Arrested and Charged with Fraud and Faces Up to 37 Years in Prison

More than a year after the media company was shut down after losing millions of dollars, the CEO of Tony Media has been arrested while being charged with fraud.

According to CNN, Carlos Watson, the founder of the startup business, Ozy Media was arrested on Thursday on fraud charges. The embattled CEO was accused 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 stated that Watson was released on a $1 million bond and is due back in court next month on March 8. If he is convicted of the crimes, Watson will be looking at a mandatory minimum sentence of two years in prison up to a maximum sentence of 37 years.

Breon Peace, the United States Attorney for the Eastern District of New York said, “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.

Ozy Media started to unravel after The New York Times reported about the alleged deceptive practices Watson and the company took part in.

In a statement that was emailed to CNN, Watson’s attorney, Lanny Breuer, confirmed that his client had been arrested and was shocked 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 also charged by the Securities and Exchange Commission in a parallel civil case. Watson and Ozy Media was accused of defrauding investors of about $50 million “through repeated misrepresentations concerning the company’s basic financial condition, business relationships, and fundraising efforts.”