The founder of the troubled digital start-up Ozy Media has pleaded not guilty Thursday to federal fraud charges accusing him of scheming to prop up his financially struggling company.
1 / 7Carlos Watson, center, leaves Brooklyn federal court in New York, Thursday, Feb. 23, 2023. The founder of the troubled digital start-up Ozy Media has been arrested on fraud charges as part of what prosecutors say was a scheme to prop up the financially struggling company.
Ozy advertised itself as a progressive digital platform for “the New and the Next,” saying on its website that it sought to create a “space for fresh perspectives, introduces you to rising stars and breakthrough trends, and offers new takes on everything from news and culture to technology, business, learning and entertainment.”
Shortly after, Ozy said it was shutting down — although Watson has since tried to revive the endeavor. Rao pleaded guilty in federal court this week, while Ozy’s former chief of staff, Suzee Han, did so last week. Both were released on bail to await sentencing. The guilty pleas and arrests were first reported by the Wall Street Journal.
Michael J. Driscoll, the assistant director-in-charge of the FBI’s New York field office added that Watson “repeatedly attempted to entice both investors and lenders through a series of deliberate deceptions and fabrications.”
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