Ozy Media, CEO Charged With Fraud

Ozy Media and its Chief Executive, Carlos Watson, were indicted on charges of repeatedly lying to investors and lenders about core aspects of the company’s business. Watson was arrested Thursday morning and accused of falsifying information about Ozy’s financial performance and audience size, altering and fabricating contracts for some of its television shows, and inflating projected earnings. The indictment alleges that Watson attempted to secure tens of millions of dollars in investments and loans to offset the company’s mounting debt. Former Ozy executive and co-founder Samir Rao pled guilty to fraud and identity theft charges in a federal court proceeding earlier this week. The Securities and Exchange Commission also filed a civil lawsuit against Watson, Rao, and Ozy, alleging they lied to investors.