NEW YORK CITY: Carlos Watson, the charismatic founder of Ozy Media and former MSNBC and CNN host, who has found himself embroiled in a legal battle, has vehemently denied the allegations of defrauding investors in his once-promising media startup.
What sets this case apart from the typical white-collar crime accusations is Watson's resounding claim that the entire federal criminal case against him is tainted by racial bias. While Watson insists on his innocence, he contends that he is a victim as he was "entrepreneuring while Black," as per Daily Mail.
Who is Carlos Watson?
Born and raised in Miami to a father from Jamaica and a Black American mother, Watson reportedly overcame racism from a young age. He managed to secure admission to elite schools based on his talents and went on to graduate from Harvard University and Stanford Law School.
Watson's career in media began as a guest political commentator on cable news, when he frequently appeared on CNN and later hosted an MSNBC show.
In 2012, Watson founded Ozy Media with financial backing from Laurene Powell Jobs and other investors. The digital news site aimed to provide a platform for fresh perspectives, introducing rising stars and breakthrough trends across various fields.
Watson's background and experiences led him to acknowledge the challenges faced by entrepreneurs of color in securing financing and establishing their presence in the workplace, as per the report.
The rise and fall of Ozy Media
Ozy Media was positioned as a space for innovative perspectives and insights, covering various topics from news and culture to technology, business, learning, and entertainment. However, the company faced insurmountable debt issues and fundraising concerns.
To sustain operations, Ozy Media resorted to high-interest loans and pursued additional investor funding aggressively.
The company's downfall accelerated when The New York Times reported in October 2021 that Ozy's COO Samir Rao had posed as a YouTube executive to secure additional funding from Goldman Sachs.
The subsequent indictment accused Watson and Ozy Media of conspiring to commit securities and wire fraud, with Watson facing identity theft charges for his alleged involvement in the impersonation of various media executives.
Carlos Watson's racial bias claims and legal defense
The legal troubles for Watson began in February when two of Ozy's top executives, including former COO Rao, pleaded guilty to fraud charges.
Prosecutors accused Rao of impersonating a YouTube executive during a call with prospective investor Goldman Sachs.
Watson's defense team contends that these charges result from his "entrepreneuring while Black."
Through a spokesperson, Watson, 54, argued that he is being unfairly targeted because of his race.
He stated, "While it's horrifying to think that white prosecutors would target me, every person of color knows that it happens." His high-powered defense team has filed a motion to dismiss the case, alleging racial targeting.
However, federal prosecutors have vehemently denied these claims, asserting that Watson is charged solely because of his own criminal activities.
A judge is set to hear oral arguments on Watson's motion to dismiss the case, as well as a separate motion to suppress evidence he alleges was illegally seized, at a hearing in Brooklyn.
