Ozy CEO and co - founder , Carlos Watson , was arrested on Thursday for conspiring to commit security fraudulence and cabal to place wire imposter . His arrest comes just day after fellow atomic number 27 - founder and Chief Operating Officer Samir Rao and Suzee Han , Ozy ’s former headman of stave , pleaded guilty to fraudulence charge .
Watson is now accused of engaging “ in a scheme to defraud OZY ’s investors , likely investors , potential acquirers , loaner , and likely lenders , ” harmonize to federal court record as reported byCNN .
He will reportedly be arraign in a Brooklyn , New York federal judicature , and his lawyer , Lanny Breuer told theWall Street Journal , “ We are really disappointed . We have been move in good faith and believe we had a constructive dialog with the governing and are shock by the activity this morning . ”
Photo: Kimberly White (Getty Images)
Ozy was a medium and entertainment company that launched in 2013 butreceived disconfirming media attentionwhen The New York Timesreportedin 2021 that Rao had misguide Goldman Sachs Group Inc. investors during a fundraising call by impersonating a YouTube executive .
The conversation orbit around a $ 40 million deal to invest in Ozy , but Watson argue that Rao suffered from genial health issues which prompt his behaviour and since Goldman Sachs had n’t agreed to invest in the company , there was no harm done .
The company releaseduncertain and often uncredible informationabout its pattern and when The Times first reported on the scandal , Ozy was reportedly still open although Watson announced it had shut down in 2021 .
Rao pleaded guilty under the name John Doe in a secretive visitation that allowed an on-going investigation into Ozy ’s practices by Brooklyn ’s U.S. lawyer ’s berth . He accommodate to misleading investors between 2018 and 2021 and told prosecutors he had falsely increased Ozy ’s financial information , and let in to lease on another somebody ’s individuality between February 2020 and February 2021 .
Suzee Han , Ozy ’s former chief of stave , told a magistrate judge that two administrator conduct her to falsify financial info , but did not specify who the two were . Han pleaded hangdog to conspiracy fraud charge under the pseudonym Jane Doe .
Breon Peace , the United States Attorney for the Eastern District of New York , toldCNN , “ As alleged , Carlos Watson is a con piece whose business strategy was base on unlimited misrepresentation and fraudulence – he run Ozy as a condemnable establishment rather than as a reputable media company . ”
Thursday ’s arrest comes only 2 weeks after Watson staged a bizarre retort . AsSemaforreported , the embattled CEO hear to rebrand Ozy as a “ bracing , ” “ hip joint , ” digital medium outlet in a 30 minute presentation to potential advertiser and investor .
If convict , Watson face a minimum sentence of two years in prison up to a uttermost of 37 year .
BanksGoldman SachsLaw , Crime
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